Readers may be familiar with the Caldwell Theatre in nearby Boca Raton. Recently, though, Palm Beach residents and South Florida's theater community were given a jolt when they learned that the board of directors for the theater was considering filing for bankruptcy. The news comes after another local theater abruptly closed its doors when it declared bankruptcy this past June.

However, while a local news report did manage to confirm the news, the board of directors for Caldwell Theatre is reportedly only considering filing under Chapter 11. A Chapter 11 bankruptcy filing would allow the theater company to continue operations, including performances, and pay employees while reorganizing its finances. It would additionally be able to do so under the protection of a court, and without the threat of creditor harassment.

The theater's artistic director openly cited an inability to make mortgage payments on the new playhouse as the reason behind its money woes. Indeed, as consumers everywhere hold back on discretionary purchases, perhaps including theater tickets, companies of all types are finding it increasingly difficult to meet their financial obligations. However, bankruptcy may be a viable option.

Far from being an end, bankruptcy can actually offer a new beginning. If Caldwell Theatre does decide to file for Chapter 11 bankruptcy protection, it will be able to reorganize its debt and create a payment plan, allowing it to hopefully emerge as a leaner and more efficient operation. Other Florida businesses in the Palm Beach area that are facing dire financial straits may also consider the possibility of filing for Chapter 11.

Source: Palm Beach Post, "Caldwell mulls Chapter 11 bankruptcy protection," Hap Erstein, Feb. 10, 2012