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New Jersey based store chain faces business dissolution

Daffy's, a family run, discount clothing store has been a part of the New Jersey landscape since 1961. Over the last 50 years, the business grew to include a total of 19 stores in three states. However, after 50 years in business, Daffy's has had to make the difficult decision to close its doors permanently and is faced with implementing a business dissolution plan. Daffy's pending closure comes on the heels of other small business closures last year.

The company decided to shut its doors after cash flow problems made it impossible for them to pay their vendors in May of this year. Company representatives have indicated that they have just not been able to compete with larger discount clothing retailers. Adding that to the uncertain economy, the Daffy's reached a point where it had no other choice.

According to representatives of Daffy's, part of that dissolution plan is to keep employees paid and receiving benefits for approximately 60 days. It will take several months to liquidate all 19 stores, eight of which are in Manhattan, four in other parts of New York, six in New Jersey, and one in Philadelphia. A final closing date for the stores has not yet been set.

Anytime a business closes, there are always many aspects to consider. Navigating through all of the business and legal ramifications takes planning and advice. New Jersey law requires certain steps be taken in order to close and dissolve a business. With so many details to consider, having a business dissolution plan will make the transition smoother for everyone involved.

Source: The Wall Street Journal, "Daffy's to liquidate its 19 stores," Andria Cheng, July 16, 2012

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