Joseph C. Barsalona II Quoted in DailyMail, “Worrying Update on Mom-and-Pop Bankruptcies Shows Recession Has Begun”

Joseph C. Barsalona II, partner in the firm’s Bankruptcy, Restructuring & Creditors’ Rights practice, was recently quoted in a DailyMail article titled, “Worrying Update on Mom-and-Pop Bankruptcies Shows Recession Has Begun.” The article discusses how small, independent businesses such as mom-and-pop shops, restaurants and local retailers are experiencing a notable rise in bankruptcies and closures, which experts say could be an early warning sign of economic weakening.

“The little guys are going to start falling first. A recession is coming. I agree with economists that the increase in small business bankruptcies is a canary in a coal mine,” said Barsalona….

Barsalona said Subchapter V is really effective for small businesses that are trying to keep their doors open. It's cheaper than Chapter 11 filings and normally keeps the business in a small founder's control. 

But, he warns that the increase is a worrying sign for the broader economy.

“This is going to lead to a further increase in large-size bankruptcies and distress in the economy,” Barsalona said. “We're just seeing the start of this.” 

'Small businesses tend to fall first,' he said. 'When enough of them start going under, the stress eventually spreads to larger companies. We’re likely just seeing the beginning of that process.'

To read the full article in DailyMail, click here.