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Mr Zimmerman was helpful and kind and prompt . He always answers his phone and that is refreshing . I will be using him for my bankruptcy in the future. He is one of the good ones . He is an outstanding attorney who truley care . He made ev...
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Mr. Zimmermann is a fantastic bankruptcy attorney who handled my case with care, efficiency and urgency. We were able to beat a judgement against me in the nick of time, and I truly feel a sense of relief due to the services of Mr. Zimmerma...
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This Lawyer will go above and beyond for you. As well as show tremendous empathy for those who are vulnerable and scared. His compassion to help civilian's shows through his actions and with his word. When he says he is going to call he cal...
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I’ve worked with Mr.Zimmerman on two different legal issues. In both instances he was fantastic! He is extremely knowledgeable and compassionate and able to breakdown a course of action into language anyone can understand. I would highly re...
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I highly recommend Mr. Zimmermann as an attorny. I recently purchased an investment property and boy was he helpful. He was easily available, very clear in explaining various concepts, laws and regulations, and provided very helpful tips o...
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- posted: Mar. 11, 2026
For companies that are struggling financially, Chapter 11 bankruptcy might be the lifeline that helps them refine their operation and restore profitability. Many large retail chains have sought this form of debt relief due to the emergence of online shopping and other factors. Under Chapter 11, stores can stay open and connected to customers while making significant changes.
As with any type of bankruptcy, Chapter 11 demands clear, honest engagement with the court. When questions exist about a company’s information or actions, that business might lose the benefits Chapter 11 offers. Recently, the U.S. Bankruptcy Court for the District of New Jersey dismissed the case of Ashley Stewart, a women’s clothing retailer, based on a lack of proper authorization for the filing.
Ashley Stewart had filed for Chapter 11 bankruptcy twice before in the previous 15 years. What led to the problem this time started with a foreclosure sale of company assets. The company filed the Chapter 11 proceeding to reverse that sale, but the filing was authorized by a board of directors that had been newly assembled during a dispute over company governance. In response, the existing board sued to stop the bankruptcy, alleging that the recently constituted group had no power to initiate a filing.
Judge Stacy L. Meisel agreed with the existing board position that Ashley Stewart’s Chapter 11 petition was invalid and possibly in violation of a previously entered state court order. Consequently, she dismissed the bankruptcy action, opening the door for creditors to recover what they are owed directly from the company.
While a well-run restructure under Chapter 11 could potentially save a business, it is not a cure-all for companies that have serious internal problems along with their debt. Issues arising from the sale of Ashley Stewart in 2024 had not been resolved, with one faction accusing the other of exploiting the bankruptcy process to take control of the company.
If your business is facing financial distress, consulting experienced bankruptcy counsel early can help ensure filings are properly authorized, strategically sound and positioned to achieve meaningful relief.
The Law Offices of James C. Zimmermann represents New Jersey businesses in Chapter 11 proceedings and other types of bankruptcies. For a free initial consultation, please call 973-764-1633 or contact us online. Our five North Jersey offices are in Vernon, Wayne, Pompton Lakes, Hackensack and Nutley.
