Two well-known Chicago eateries, Aya Pastry and Etta, have filed for bankruptcy under Chapter 11. The filing was made by Etta Collective, the company owned by restaurateur David Pisor, which also operates Etta in Bucktown and Aya Pastry at 1332 W. Grand Ave. Both businesses remain open despite the filing, and there is also an Etta location in Scottsdale, Arizona. Small business owners face unique financial challenges, especially in the first five years of operation. If your business is in financial straits, consulting with a Chicago bankruptcy lawyer can help you avoid mistakes that could cost you your enterprise.
This filing follows the recent closure of Etta’s River North location at 700 N. Clark St., which shut its doors less than three weeks ago. In a statement addressing customers, Aya Pastry explained that the bankruptcy filing was a necessary step to restructure the debt of its parent company, Etta Collective.
The statement read in part, “This past year has been particularly tough for the restaurant industry, and our parent company was not immune to these challenges. As a result, Etta Collective needed to apply for protection under Chapter 11, subchapter 5 of the US Bankruptcy Code.”
Aya Pastry reassured customers that operations would continue as usual. “Aya continues to operate and add new clients to our roster. Our commitment to producing high-quality breads, cakes, and pastries remains unchanged. We are dedicated to ensuring that day-to-day operations proceed without interruption,” the statement continued.
The company emphasized its optimism moving forward, stating that despite the financial restructuring, they remain confident in their future. They also expressed gratitude to their loyal customers, acknowledging that their support has been vital during this challenging time. Aya Pastry and Etta are hopeful that the reorganization will allow them to thrive in the long term.
What A Bankruptcy Lawyer Can Do For A Chicago Small Business Owner
For small business owners in Chicago facing financial difficulties, a bankruptcy lawyer can provide essential support in navigating complex legal and financial challenges. Whether dealing with mounting debt, a decline in revenue, or unforeseen circumstances, a bankruptcy lawyer offers several services to help business owners protect their interests and make informed decisions about their future.
One of the primary roles of a bankruptcy lawyer is to evaluate the financial situation and advise on the best course of action. They can help determine whether filing for bankruptcy is the right solution and which chapter of the U.S. Bankruptcy Code is most appropriate—Chapter 7, Chapter 11, or Chapter 13. Chapter 7 bankruptcy is often used for businesses looking to liquidate assets and close down, while Chapter 11 allows for reorganization of debt, enabling the business to continue operating. Chapter 13 is typically for individuals with small businesses who need to reorganize their personal and business debts.
A bankruptcy lawyer will also assist with the filing process, ensuring that all required paperwork is completed accurately and filed within the necessary timelines. They can guide business owners through the legal intricacies of bankruptcy, including understanding creditor negotiations, automatic stays, and the role of the bankruptcy trustee.
Additionally, bankruptcy lawyers can help businesses explore alternatives to bankruptcy, such as debt restructuring, loan modifications, or settlement negotiations. They may negotiate with creditors to reduce the amount of debt owed or establish more manageable repayment terms.
If you are a small business owner in trouble, talk to the professionals at Therman Law Offices, LTD. We can help you create a plan to reduce debts, protect your assets, and make the legal system work for you and your business. We offer much-needed peace of mind during this difficult time—call us today to learn more.