There are a number of reasons why people would file for bankruptcy. A series of unforeseen events or one crippling event could cause financial ruin and cause bills to become unpaid. While consumers usually file Chapter 7 bankruptcy to discharge their debts, Iowa businesses typically file Chapter 11 bankruptcy protection to restructure their business.
GoLite, a provider of outdoor clothing has filed for Chapter 11 bankruptcy. The reason for filing is to restructure its debt and have a profitable company. The company overall liabilities are just under $10 million and have unsecured claims of almost $5 million. The company listed as having assets that are between $1 million and $10 million, but have not yet provided financial records. Six stores are expected to remain open as well as the company headquarters.