The Pasadena Playhouse is slated to close due to unmanageable debts. It is still unknown whether or not the famed Pasadena Playhouse will file for bankruptcy, but the theater will definitely close on February 7th. In California, the theater is famous for helping launch several famous actors’ careers, including Gene Hackman and Dustin Hoffman. The theater’s thirty-seven employees were notified that they would not have a job after February 7th.
At this point, the company is looking to seek help from an attorney to decide what the theater should do next. The company has about $500,000 in bills due right now, and it owes about $1.5 million in debts. It is likely that bankruptcy will be the next step, because the company doesn’t have a lot of options.
The theater itself has been no stranger to bankruptcy throughout its history, and the theater has actually closed on a few different occasions due to financial difficulties. The theater always seems to bounce back though, and one such episode happened just a few years ago. The theater filed for Chapter 11 bankruptcy protection in 1998, but then saw record revenue numbers in 2006. Since then, attendance has fallen, and the theater hasn’t been able to keep its financial situation in order. With the recent down economy the theater began really struggling, and now it can’t continue to operate.
The Pasadena Theater’s current situation is different than most corporate bankruptcies, because the company is closing before filing for bankruptcy. Most companies are able to stay open throughout the bankruptcy process. If the situation didn’t get too out of control and if the owners saw a future in the theater, it likely could have remained operational throughout the bankruptcy process.
A business bankruptcy isn’t all that much different from a personal bankruptcy. Individuals and families file for bankruptcy everyday in order to wipe out and restructure debts. They are able to keep their house and vehicle, and they end up with a much better financial situation. If you are struggling like the theater was, don’t wait around to file. Contact a bankruptcy attorney today, and they will explain to you in detail what will benefit you the most.