Add another one to the bookstore bankruptcy column. Outwrite Bookstore & Coffeehouse will close down on January 26, 2012, reports the Atlanta Journal-Constitution.
The iconic bookstore in Midtown, had been facing financial difficulties for some time. Owner Philip Rafshoon tried to keep the store going longer, but ultimately was not successful.
In an outgoing email Rafshoon wrote:
"Thanks to all of you who made Outwrite the special place it has been over the past 18 years. Thank you to all who came in on a regular basis, showing your commitment to supporting independent, local businesses. And thank you to all of the authors, poets, artists, musicians, volunteers, and activists, who have entertained, educated and energized us."
The bookstore had special significance to the LGBT community, hosting numerous gay and lesbian stars, as well as those that were friendly to the community. Some of the recent Outwrite authors included RuPaul, Star Jones, and CNN's Don Lemon.
Once Outwrite is closed it will file for bankruptcy, reports the Georgia Voice.
Assuming that Outwrite is a sole proprietorship, the bookstore bankruptcy could be a Chapter 7 or Chapter 13. Either of these options can be used to satisfy and wipe out personal and business debts.
Given that the store is shut down, Rafshoon may file for Chapter 7 bankruptcy, assuming he qualifies. Under this type of bankruptcy, a bankruptcy trustee will liquidate, or sell off, all the eligible property in order to satisfy Outwrite's personal debts, including those that were taken on behalf of the business. At the end of the bankruptcy process (the liquidation of the personal property), the debts may be wiped out by the discharging of the bankruptcy.
For more information about Chapter 7 bankruptcy, please see below.
Related Resources:
- Find an Atlanta Bankruptcy attorney (FindLaw)
- Chapter 7 Bankruptcy Rules Overview (FindLaw)
- Chapter 11 Bankruptcy (FindLaw's KnowledgeBase)
- Struggling Outwrite Bookstore issues plea for support (AJC)
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