Crab fishers are suffering yet another economic hardship, this time as a result of Hurricane Isaac. The natural disaster is responsible for sinking ships, electricity outages and devastation of the crab harvesting infrastructure, all of which are major setbacks to the crabbing industry. As a result of these setbacks, it's a possibility that some businesses will be incapable of suffering the loss and could be looking at a dissolution or sale of business.
While the exact financial toll of the damage hasn't yet been calculated, the negative impact the hurricane has had on the industry was recently highlighted in an assessment commissioned by the Louisiana Seafood Promotion and Marketing Board. The assessment said the crab harvest in particular would suffer significant setbacks as a result of the hurricane, and other harvests such as shrimp and oysters would also be reduced for some time.
In addition to damaged infrastructure or lost equipment, many businesses lost revenue by being forced to shut down for days as a result of the storm. Employees of crab processing businesses have found themselves physically unable to get back to work, blocked by debris on the highways or hindered by the consistent electricity outages, which has further stalled the recovery.
One reason for the extent of the damage is that the hurricane quickly changed its path and was anticipated to be significantly weaker than it was, giving those in the seafood industry a false sense of security.
While some crabbers have maintained that they will return to work, others have expressed thoughts of scaling back their ventures. Others still will likely find themselves incapable of coping with the losses incurred so far this season. For these businesses, the sale or dissolution of the business may be a likely result. Dissolving a business can be a complex process with a number of governmental requirements. Individuals looking to sell a business should make themselves aware of the legal complexities of these engagements as well.
Those who are looking to minimize their losses by disbanding their company or selling their assets likely want to avoid more complications on the way out. This is why it's important to be prepared and take the correct steps in the first place, so it's easier to move on to their next business opportunity.
Source: Huffington Post "Hurricane Isaac Hit Crab Fishers Hard, Says Louisiana Seafood Promotion And Marketing Board," Kevin McGill, Sep. 7, 2012