By Canney Savanney There are some advantages to consumers when companies go bankrupt. Sure, it’s not easy on the employees but some big corporations give incentives to their loyal employees who stick with them to the very end. There are several types of bankruptcies that can be filed. Bankrupt...

By Canney Savanney

There are some advantages to consumers when companies go bankrupt. Sure, it’s not easy on the employees but some big corporations give incentives to their loyal employees who stick with them to the very end.

There are several types of bankruptcies that can be filed. Bankruptcy can be filed by an individual, entity, or a corporation. According to uscourts.org, most of the big corporations that file bankruptcy are Chapter 7 and Chapter  11. Chapter 7 bankruptcies call for businesses to liquidate their products, while Chapter 11 calls for businesses to reorganize their company. For example, Toys ‘R’ Us filed chapter 11 bankruptcy back in September 2017 but only during the month of January 2018 did they begin to close a number of stores to pay their debts.

So, you are thinking again how does this benefit you as the consumer? Sales! Final sales are constantly going on everywhere! It’s in your best interest to go and purchase merchandise as soon as possible. A company’s main goal when undergoing the process of bankruptcy is to liquidate their merchandise before their door’s close one last time.

For instance, in Buffalo’s very own backyard there is one big franchise closing their doors for good. The Toys ‘R’ Us branch known as Babies ‘R’ Us in the Boulevard Consumer Plaza is among one of the closings occurring. Babies ‘R’ Us nationwide will be closing their doors between February and April 2018 as they run their going-out-of-business sales. In an approach to avoid taking a financial lost, the company will conduct close out sales so they do not have to redistribute their merchandise to the remaining open locations.

The only flaw to these final sales to the consumer is they are indeed final. There is no opportunity for the consumer to go back to return or exchange it. So, when deciding to make a purchase at a store that is closing you better make sure it is worth your investment in the long run. Purchasing something for the sake of a deal of a store closing is not always the wisest choice when it comes to staying on track for a healthy budget.