Resilience Turns Dangerous When Leaders Deny Reality | Opinion
Summary
The author argues that persistence can harm a struggling company when leaders ignore changing financial facts. The article recommends setting objective triggers, such as cash limits or missed forecasts, to prompt timely reassessment and action.Key Facts
- U.S. bankruptcy filings rose 14 percent in the first quarter of 2026 compared with a year earlier, according to Epiq AACER data published by the American Bankruptcy Institute.
- Commercial Chapter 11 filings increased 37 percent over the same period.
- Subchapter V elections, a bankruptcy path designed for small businesses, rose 67 percent.
- The author describes a board that rejected a sale offer estimated at $80 million to $90 million and chose another path.
- The company later entered bankruptcy, where the best offer was a fraction of the original one.
- The author recommends objective reassessment triggers such as cash thresholds, missed forecasts, covenant breaches, or financing deadlines.
- The article says hope and morale cannot replace cash-flow forecasts or an assessment of a company's remaining financial runway.
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