Groupon Deal Pushes Bakery to the Brink of Bankruptcy

A bakery in the UK decided to run a Groupon coupon to draw more customers to their small bakery. Instead of being a boom to their business their deal with Groupon brought them to the brink of bankruptcy.

Rachel Brown who runs the Need a Cake bakery in Reading agreed to the Groupon which gave potential new customers a 75 percent discount on a half dozen hand decorated cupcakes. Close to 1,000 of those coupons were sold, but at a great expense, to Brown almost being forced to consult a bankruptcy attorney.

Brown was forced to make over 8,500 cupcakes, requiring her to hire more employees and pay overtime to fill the orders. She claims it is the worst business decision she made, she lost all of her yearly profits on the deal.

A business that loses a great deal of income for a variety of reasons has the option of hiring a bankruptcy lawyer to help them restructure their business in order to avoid complete ruin.

Other small businesses have come forward with their complaints about Groupon offers. But representatives for Groupon say that a business has control over the number of voucher which can be sold and are allowed to limit the dates of the offer.

Sometimes what seem to be savvy business move can actually lead to deep indebtedness or failure, but before a business allows that to happen, the council of a bankruptcy attorney can show them a way out of a serious financial mess.