If you're interested in following news about businesses that have entered into bankruptcy, then you may be pleased to know that Color Spot Nurseries has emerged from bankruptcy and will continue to operate. According to the Aug. 21 news release, the company is the country's largest greenhouse.
The company offers several services and items including bedding plants, high-value patio planters, hanging baskets and perennials. Interestingly, the company appointed a new chief executive officer (CEO) following the bankruptcy. He has been with the company for 20 years and played a part in several roles in the company's operations.
The nursery provides plants and high-quality products to retailers and wholesalers primarily in the Gulf, Southwestern and Western regions of the United States. However, it does provide services and products to 26 states. It currently provides 1,400 jobs and has been running since 1983.
It ran into financial trouble for a short time, but by entering into Chapter 11 bankruptcy, the company had time to address its capital and to make sure it has enough liquidity to meet the needs of its customers.
Chapter 11 bankruptcy is designed to help companies continue to run while addressing debts and restructuring. Restructuring is sometimes all that is needed to provide a company with more liquidity. It also gives the company a chance to negotiate for better rates with those it works with, reducing costs and providing better financial footing for the future. Any company with debts has the potential to restructure through a Chapter 11 bankruptcy if those debts get out of hand. It's something that could keep a company afloat.