When a company gets put into a receivership, that’s usually a last-ditch effort to save the brand.
“The receiver’s job is to literally operate the business,” said John Mark Jennings, a partner in the law firm of Shulman Hodges & Bastian LLP to Smart Business. “A receivership is an action brought against your company because it is being operated to the detriment of shareholders or creditors.”
It’s an extreme situation that could result in the company’s assets being sold off.
“If the right thing is to keep the business open, the receiver will do that,” Jennings said. “If a business cannot pay its debts and is a dying proposition, the receiver is more apt to wind down his operations, rather than spending his…