This is a strategic move IMHO. There will be retail knee jerk, and those looking for a second opportunity for good entry may get a good shot.
FYI on chapter 11 (this is not chapter 7):
Chapter 11 is often called the “reorganization bankruptcy.” It’s for businesses that want to keep operating but need time to restructure their finances in order to pay the bills.
Filing can be done voluntarily, or it can be forced on a business if three or more creditors file a petition with the bankruptcy court.
Once filed, creditors are temporarily prohibited from taking any action. The business or individual has four months to come up with a reorganization plan, though that can be extended to 18 months. After that, creditors can propose reorganization plans.
The plan is basically a contract between the debtor and creditor that defines how the business will operate and pay its financial obligations. Most plans include some downsizing to reduce expenses and free up assets.
