American Flag Sellers Files for Bankruptcy Just Days before Independence Day

Reedsburg, WI- Just a week before America prepares to celebrate her independence, a Wisconsin- based company which specializes in selling the stars and stripes has filed for Chapter 11 reorganization.

Liberty Flag and Specialty Company, which employs nine people in their Reedsburg store, asked a bankruptcy judge to allow them to hold onto cash, intended for their main creditor, in order to keep the store running while their bankruptcy attorney worked out a reorganization plan.

According to the Wall Street Journal Liberty Flag did not state why they are strapped for cash. The company does owe a stateside manufacturer, Eder Flag Manufacturing, a significant amount, a little over $200,000. But a spokesman stated that the debt is two years old.

Liberty Flag’s largest creditor is Community First Bank.

The bankruptcy of a flag seller so close to the Fourth of July leaves many to wonder if it is due to our dwindling manufacturing sector or our dwindling patriotism. But it’s likely our manufacturing sector, which just reached a three year low.

The Wall Street Journal recently reported that $3.6 billion of America flags are imported every year with the majority coming from China.

Businesses fail for a number of reasons, either because of management, unsound business models or the fickleness of consumers, just to name a few. Luckily, for these troubled businesses, a bankruptcy lawyer can help them get out of the red by guiding them through a structured debt-relief plan.

Individuals, too, can get protection from their creditors, either through Chapter 7 or Chapter 13 bankruptcy filing. Deciding which plan is most appropriate is easy when the indebted individual gets the advice of an accomplished bankruptcy attorney.