Many people think that if a company files bankruptcy it means they are going out of business. Often that is not the case. If fact, certain types of bankruptcy filings serve the opposite purpose – to keep a company in business.
On April 29, 2008, Home Interiors voluntarily filed for reorganization under Chapter 11 of the United States bankruptcy code. The Texas based direct sales party plan company has been selling home decor products for more than 50 years. They currently operate in the United States, Canada, and Mexico and the bankruptcy filing involves only their US operations.
This type of filing allows the company to continue to operate the business in much the same way as they did before the filing. In public information on their website, Home Interiors states that their intention is to “use the protections afforded by Chapter 11 to restructure our debt and restore our financial health and profitability.” In their FAQ for consultants they ask their representatives to continue to sell product and recruit new consultants.
The company clearly has a plan to come out financially secure and with a successful future. In my opinion, their willingness to publicly address some of the many questions consultants have is an indication of their confidence in the restructuring plan. And most important for consultants who may be making decisions about their future with the company, it provides accurate information on which to base decisions rather than forcing them to try and determine whether outside sources have all the facts.
Update: In 2009 Home Interiors and Home & Garden Party merged to become Celebrating Home.
For more information about the Home Interiors consultant opportunity, visit HomeDecorBusiness.com’s Home Interiors information page.