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One of the oldest clothier's in Illinois files Chapter 11 again

One of the first things to go in a recession is luxury items. People just aren't as willing to part with their money for items they consider wants and not needs. The evidence of that can be seen in the recent filing for Chapter 11 bankruptcy protection by an Illinois treasure and one of its oldest clothing stores.

This isn't even the first time that Mark Shale has had to file Chapter 11. Back in 2009, the Illinois specialty clothier was forced to close its out-of-state stores and an outlet store before an investor provided the company with $4 million dollars to pay down its debt and continue operating its last three stores. Unfortunately, it wasn't enough, and the company is once again in financial trouble.

Unless the company is able to attract significant investors, the company is prepared to begin a clearance sale in September at all three of its locations with the assistance of Gordon Brothers Group. Since Mark Shale is unable to fill its fall merchandise orders, if either of these measures fails, the company may not be able to recover this time. Like many other businesses and people who have been treading water since the beginning of the recession, this may be the company's last bankruptcy.

This recession has brought a lot of people and businesses to the bankruptcy courts through no fault of their own. Seeking bankruptcy protection by filing Chapter 11 may be the best way to save a long standing business or a home in financial distress. However, when saving that business or home isn't possible, the bankruptcy courts can provide a fresh start.

Source: Chicago Tribune, "Mark Shale clothier files again for bankruptcy," Corilyn Shropshire, Aug. 22, 2012

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