The famous Hostess Brands Inc., maker of Twinkies and other delicious desserts, has filed for Chapter 11 bankruptcy.

On Wednesday, the company filed for bankruptcy citing cost restructuring as its main reason.  Court papers released stated, "Whether the debtors can achieve long-term viability depends directly and substantially on the debtors’ ability to achieve dramatic change to their labor agreements, with a corresponding material reduction in their cost structure and legacy pension and medical obligations, and a restructuring of their capital structure.” 

Hostess's current lenders, Silver Light LP, loaned $75 million to keep it in operation while the restructuring takes place.

If you are considering bankruptcy, contact Maryland chapter 11 bankruptcy attorneys of Chaifetz & Coyle, P.C. by calling 443-546-4608. 

On Monday, RoomStore Inc., filed for Chapter 11 bankruptcy protection.  

This isn't the first time RoomStore Inc. has filed as they did so a decade ago.  In 1997, RoomStore was bought by U.S. Heilig-Meyers, one of the country's biggest furniture retailers.  In August of 2000, RoomStore had over 54 locations in Maryland, Texas, Virginia, Washington, and Oregon.  That same month, Heilig-Meyers filed for bankruptcy.  RoomStore made it out of bankruptcy protection with 63 stores.

RoomStore currently owns 63 furniture stores and operates 81 Mattress Discounters bedding stores.  The Mattress Discounters are not under their current bankruptcy protection.  RoomStore plans to reorganize under this new protection and remove any stores that are unprofitable.

If you are considering bankruptcy, contact Maryland chapter 11 bankruptcy lawyers of Chaifetz & Coyle, P.C. at 443-546-4608 today. 

Today the Mexican cuisine, casual-dining restaurant chain Real Mex filed for Chapter 11 bankruptcy. Real Mex has nearly 200 locations in a dozen states and employs about 11,000 part-time and full-time employees.

The restaurant began to have financial troubles after the economy took a major downturn in 2008 and less people began eating out. In 2008, its annual revenue was $553 million and went down to $500 million the next year, and then down again to $478 million in 2010.

Real Mex is hoping to hold an auction by early 2012. Among the chain's debts includes $37.6 million to General Electric, $36 million in interest and principal, and $34 million to suppliers, vendors, and trade creditors.

If your business is considering filing for Chapter 11 bankruptcy, contact the Maryland Chapter 11 bankruptcy lawyers of Chaifetz & Coyle, P.C. at 443-546-4608 today.

Martin O'Malley, the governor of Maryland, recently announced that workers and small businesses that have been affected by Allen Family Food's filing of Chapter 11 bankruptcy would be receiving state government assistance until they are able to get back on their feet.

Allen Family Foods was a company based in Maryland that was a global exporter of poultry products. The company recently filed for Chapter 11 bankruptcy, which affected many of the small businesses that sold and purchased poultry through the company.

Now, the state of Maryland is looking to help those small businesses and their workers avoid bankruptcy themselves. According to Gov. O'Malley, "Our administration is working to pull together all available resources to help protect the growers and employees impacted by the Chapter 11 bankruptcy filing by Allen Family Food."

If you own a business that is having financial problems, please contact the Maryland Chapter 11 bankruptcy lawyers of Chaifetz & Coyle, P.C., at 443-546-4608.