From time to time, everyone enjoys a good recreational game of air hockey, ping-pong or horseshoe. However, as the economy continues to suffer, the need to invest in a good table game for your basement is just not that important. Recently, the financial woes have hampered more than just unemployed individuals – local businesses, too. Sportcraft, a company that is based in the Budd Lake section of Mount Olive, New Jersey, and maintains an office China, is a maker of recreational sports equipment. Recently, this local business filed for bankruptcy in the United States Bankruptcy Court of New Jersey.
Unlike other companies that have faced financial turmoil this year, Sportcraft’s troubles emerged from factors such as heightened manufacturing costs in China and disasters in the Midwest that reduced the demand for specific sports equipment. High unemployment rates and the poor real estate market have reduced the sales of games and other products.
Earlier this year, the majority owner of Sportcraft, Wasserstein & Company, made attempts to preserve the business. In one effort, Wasserstein tried to sell the company in the hopes that a more experienced and powerful owner could secure better prices for materials and products. Nevertheless, sales have plummeted. Instead of reorganizing under Chapter 11, Sportcraft determined that filing for Chapter 7 bankruptcy was the best way to reduce debt.
Business or an individual, there are various options for dealing with monetary mishaps in the face of the upsetting economic changes. If you are facing financial chaos, you may want to look into your legal possibilities.
Source: New York Times: “Sportcraft Files for Liquidation,” Michael J. De La Merced, Dec. 30, 2011