The Texas based liquor company, Majestic Liquors, filed for Chapter 11 bankruptcy over the weekend in Fort Worth.

Chapter 11 bankruptcy allows a business to continue operating while restructuring the company under the supervision of a court.

Court filings state, “Following the expansion of alcohol sales in Lubbock County, Majestic’s sales dramatically decreased at its locations on The Strip. This decrease in overall sales in Lubbock County caused Majestic to close its retail operations on the strip in the last year.”

Other Majestic locations were hurt by the nation’s overall economic woes.

The business, which has over 40 stores across the state, estimated assets and liabilities between $10 million and $50 million. The company will continue to function and pay employees while they try to repay creditors.

If you or someone you know is considering filing for bankruptcy, contact the Galveston bankruptcy lawyers of Gipson, Norman & Root at 409-765-6000 to learn more about your rights.