When consumers learn a business is filing for bankruptcy protection, often the first image that comes to their minds is a company in financial distress.
Economic problems are not the only reason businesses need to file for bankruptcy, as the automatic stay provision of bankruptcy can help a company facing litigation to fend off legal consequences while a bankruptcy case proceeds.
A bankruptcy filing can also delay regulatory sanctions from government agencies until after a company resolves its insolvency issues.
As such, certain home improvement businesses have filed for bankruptcy this year, due to legal and regulatory issues, rather than financial distress.
Hard surface flooring producer and distributor Wellmade Floor…