would you work for a company that just emerged from Chp 11?

[andylawcc]

there is an opening for an accounting position in an ethnic restaurant chain. I remember the company was in trouble a while ago, and it emerged from Chapter 11 last year.

Now, the easy answer is: run, run away, they filed for chapter 11 in the beginning for a reason.

But theoretically speaking, after they are being bought out by vulture, i mean, venture capitalist and investment group, they should have trimmed all the fat and start back from ground up: lean and mean (supposedly, if they did their due diligence); and after a few years once it becomes profitable, then the investment group sell it off for a profit.

 

[Miramonti]

I wouldn't automatically be scared away by that, particularly if it didn't require relocation.

 

[wiredspider]

What are your other options, if any?

 

[andylawcc]

no relocation required, and i currently have a job. The situation is, I will be interviewing with another company, for which I feel quite comfortable with at this moment, so I want to know if this other "post Chp 11" company should be considered before i move on.

 

[Miramonti]

no relocation required, and i currently have a job. The situation is, I will be interviewing with another company, for which I feel quite comfortable with at this moment, so I want to know if this other "post Chp 11" company should be considered before i move on.

I'm no expert but some reorganizations work, some don't. It can also have a significant effect on culture, good or bad. Overall, it's a risk, in terms of job security and culture. Not relocating is a plus imo, particularly since it doesn't require relocating an SO and family too, and doesn't require that personal investment risk that leaves you stranded somewhere else if it didn't work out.

It sounds like you have options tho. Unless you're compensated for taking what imo are additional risks, by either pay/experience/responsibility opportunity, then personally I would weight higher the other options that I'm more comfortable with.

In general I'm all for taking risks, but there has to be a risk/reward potential to out-weigh the cost of a higher or greater possibility of failure. With what little you've said about it, it doesn't sound like what it offers is significantly more attractive than other options you have/might have.

 

[MayorOfAmerica]

I say you should explore all your options. Don't forget that an Interview is a two way process. You might find that they have really straightened out (or not) and it could be the perfect fit for you. You don't have to accept an offer that you don't feel comfortable with, but on the other hand you could be pleasantly surprised. Just make sure you ask them questions that target your doubts.

 

[skimple]

Speaking as someone working for a company that is in Chap. 11 right now... Find out if the management changed. Some companies use Chapter 11 to actually change their structure and the way they operate. Some just use it to get out of paying debts.

If the same management/owner is still in place (or a spouse/relative), I would avoid the company. Bad management remains bad management.

 

[mwtgg]

From my experience (as a fellow accountant), I've yet to see a small business that's successfully emerged from Chapter 11. That's not to say it never happens, but I'm not so sure I'd take a risk on it.