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Sushi restaurant files for Chapter 7 bankruptcy

Running a restaurant is not an easy endeavor. It is an unpredictable industry where many operators are forced out of business for a variety of reasons. For some struggling restaurants filing a Chapter 7 bankruptcy may be the best option in Texas or in any other state. This seems to have been the case for Shin's Sushi Bar which recently filed its bankruptcy petition in early September.

The petition was filed under Dalin Corporation, which was doing business as Shin's Sushi. The company listed $17,565 worth of assets while reporting $49,759 worth in liabilities. This is surprising to many since the liabilities are low compared to most other similar filings. However, the sales at the restaurant had decreased anywhere between 20 and 30 percent from two years ago, according to an estimate by the restaurant's manager.

The company's largest liability was $30,087 owed to the State of California Labor Commissioner. Some of the assets included in the petition were a $1,000 sushi case, $1,000 freezer and approximately $4,000 in frozen food. The restaurant was first opened in Sept. 2004 and is now under new ownership and with a new name. However, the new owner intends to maintain the restaurant's overall concept.

When a business decides to file a Chapter 7 bankruptcy in Texas or in any other state, the company will be forced to liquidate its assets in order to repay creditors. Although the company will no longer exist as a legal entity, the debts owed by the business will be discharged. The business owner will then be able to move onto the next business venture.

Source: sanluisobispo.com, Shin's Sushi in SLO under new ownership after bankruptcy filing, Julia Hickey, Sept. 20, 2013

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