Just in case you weren’t up to date with what is happening in the world of business and finance more businesses are filing bankruptcy. Why? Take a good look at the economy. If you think that the jobs numbers are low, what does this say about why these businesses have no jobs available? Traffic is in short supply for almost every business unless it’s medicine. Even so, the healthcare changes are making it difficult for doctors and nurses to keep the same practices, expenses and schedules too.
Sbarro, the pizza chain in malls around America is filing a second bankruptcy. It is their second filing in three years which doesn’t bode well with the public. Their statement is that mall traffic is slow, and rightfully so. As of Monday, they have filed a Chapter 11 bankruptcy, and this will be the tell all sign as to whether or not they can make it. However, if people are shopping in malls less, does it mean that this vicious cycle will continue?
With a huge bill in liabilities and not enough in assets, what could improve their standing? Will other businesses be in the same position come this time next year? Surely if the economy is getting worse it may have investors and owners considering what their next move is. Could it be that buying gold would save them? Today, I want to share with you the overall view of why more businesses and individuals are filing bankruptcy, and what you can do to avoid this in the future.
Why Filing Bankruptcy Has Increased
Sbarro isn’t the only business that has had to file a bankruptcy due to the tough economy. The company and their affiliates have all been filing and there are still so many more businesses that are filing too. It’s coming at a time when the country was told that the economy was getting better and people were spending. However, if you were to ask these businesses about that they would strongly disagree with you.
These companies have all suffered due to the number of shoppers dwindling. More and more consumers are buying second hand items or holding onto their items as long as they can. Sbarro and affiliates had discussed shutting down 155 stores last year and in the process they got the attention of those that used to frequent their establishments in the mall. Here is the bad news; these are not all franchises but corporate stores too.
It was believed that corporate stores were the ones that survived but that is no longer the case. Whether or not a business could last longer if they had gold is yet to be seen. Keep in mind that businesses all run on supply and demand, and if their suppliers don’t get paid they don’t deliver product. Suppliers also require minimum purchases in order to deliver to these establishments as well. Filing bankruptcy could help them get re-organized and re-established, but I am certain that if their suppliers weren’t getting paid, they would accept gold bullion for payment. Wouldn’t you?
Buying Gold and Filing Bankruptcy?
While you may question the reasoning behind filing bankruptcy and how it could improve your overall life, keep in mind that businesses are in fact considering how the gold market can affect them or will affect them long term. You may have heard that Facebook and the gold mining industry could buy each other out? This came up because Facebook has more money backing it than the gold industry does at this point in time. It’s not a difficult number to figure out, but it does in fact tell you a lot about where investors are putting their money right now.
Bankruptcy can bring some temporary relief but it does have long-term effects. Most business owners need to consider whether or not they really need to do this. Naturally, their attorney can provide the proper guidance but business owners just want relief from debt. This isn’t unheard of, who doesn’t want that? No business owner wants to have $100 million in assets and have $500 million in liabilities. Who would?
It may be time to consider putting back gold for your business and your home at the same time. After all, you can never be too safe, right? Even if you are considering “filing bankruptcy”, think about how gold could keep you padded for just a bit until we come up with a new currency.