EZ Worldwide Express Emerges from Chapter 11 Bankruptcy

by San Antonio Attorney

EZ Worldwide Express together with United Business Freight Forwarders announced that they will emerge from bankruptcy after filing earlier in 2016.  The associated companies doing business with Amazon, The Disney Stores, H&M stores, Forever 21, and Phillips Van Heusen.

Both establishments had filed Chapter 11 bankruptcy with about 700 employees, more than 300 trucks and13 locations at that time.  The companies made $55 million in loss-making incomes.  Now emerging from bankruptcy, the companies employ a total of 350 people, have 150 trucks, have 5 locations, and have $40 million in yearly revenue.  They owe $200,000 to PNC which is going to be paid before the end of 2016 in accordance to the bankruptcy plan.

The companies’ strategy has made possible a $10 million progress on a yearly level.  They have downsized considerably and improved their revenues.  They also have new big clients, such as Amazon and H&M.

At this period, Forever 21 had temporarily left the freight carriers.  It was previously reported that the shipping company was laying off workers and terminated its shipping agreement with Forever 21.  EZ Worldwide Express was reportedly expected to do business with the clothing retailer until 2019 for more than 170 stores.  Breaking away from the contract with Forever 21, allowed the company to reduce its number of employees.

Bankruptcy allows companies to change their business strategies in an effort to reorganizes in a beneficial way.  With the changes applied by the businesses, they were able to bounce back.

Bankruptcy law is complicated and those who have financial problems should seek proper legal advice.  A San Antonio Chapter 7 Attorney can thoroughly explain how debtors can eliminate most of their debts and start over with a clean slate.

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