The retail industry has been on a slow but steady decline for the past years, mainly due to the proliferation of online shopping. The effect of this phenomena even goes beyond the retail sector: it also touches restaurant businesses, many of which are highly dependent on the foot traffic generated by shopping centers. Because of this, it’s no surprise that many retail and restaurant companies are having problems with keeping their doors open. This has led to concerns that these businesses will soon be seeking a court appointed receiver.
What is a Court Appointed Receiver?
But what is a court appointed receiver? To answer this question, you first have to know about receivership. It’s a type of corporate bankruptcy in which the court assigns someone to take over the business while the company looks for a new buyer, settles disputes with a creditor or another entity, or strives to restructure and rehabilitate itself to prevent liquidation.
Of the several types of receivership, one of them is a court-appointed receivership. In this scenario, the court assigns a receiver (also known as a trustee) to take over the business while the proceedings are ongoing. This ensures fairness because neither of the two parties are involved in the company. This also allows for making sure the business is properly managed and operated.
Whether you’re facing the prospect of receivership or are simply asking “What is a court appointed receiver?”, it may be time to request a preliminary consultation with a receiver from Perry Group. We are a team of hospitality experts who have years of experience in the restaurant and hotel industry. We’ll help you learn everything you need to know, and give you expert guidance through the tough times ahead.
If you’re in the restaurant industry, feel free to click the video below in regards to our restaurant management consultant services. We can help you look for new ways of managing your restaurant.
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