1.ToysRUs filed for bankruptcy in the U.S. on September 18, 2017, but it continued to operate its...
Question:
1.Toys"R"Us filed for bankruptcy in the U.S. on September 18, 2017, but it continued to operate its stores until on March 15, 2018 it was announced that the U.S. operations were going out of business. Sears Holdings filed for bankruptcy on October 15, 2018 but issued a statement saying that it intends to stay in business, keeping open stores that are profitable, along with the Sears and Kmart websites. Then the case drags on:
https://www.chicagotribune.com/business/ct-biz-sears-bankruptcy-small-stores-appliances-20190214-story.html
https://www.cnbc.com/2019/04/18/sears-sues-eddie-lampert-steven-mnuchin-others-for-alleged-thefts.html
https://www.cnbc.com/2020/02/21/sears-snags-new-financial-lifeline-as-losses-continue-sources-say.html
Use these or other examples to discuss why filing bankruptcy may give an endangered firm a second chance and how to integrate bankruptcy as a key component of a strategic plan. Specifically, address the following questions in your discussion:
a.Why do some firms continue to operate while others shut down immediately after filing for bankruptcy?
b.Why did the firm file for bankruptcy in the first place? Did it explore any alternatives?
c.Evaluate the restructuring plan: how would it affect the various stakeholders? Did it work or not? Why or why not?