I’ll admit I don’t fully understand the bankruptcy process. When they file for bankruptcy, some companies go under and are never seen again, while some companies restructure themselves and/or their finances and recover later. In this case, which is it?
Chapter. 7 versus Chapter 11.
In really basic terms Chapter 11 is when a company is protected from creditors so they can restructure. Most of the little guys that they own money to will get nothing. The rest will likely get pennies on the dollar. During Chapter 11, they get to do massive restructures to the organization. Most everyone loses somethung but the company has a chance to survive.
Chapter 7 is more like close the doors and sell everything.
Chapter 11 is what Kodak went through several years ago. There is a lot of information online about that journey.
In this case, Penny’s is likely to be able to limp along for a few more years.
Worked at Penney’s.....this is just another stall on their part...it was in deep trouble ten years ago....they just keep changing CEO’s hoping for a different outcome that never happens. So they file for restructuring time and again.