SANTA BARBARA, Calif. -

A locally based staffing company is out of the red and fully operational again.

Select Staffing of Santa Barbara filed for Chapter 11 bankruptcy Tuesday after reaching a re-structuring deal with its lenders.

The lenders have agreed to inject money into the company. This will help reduce the company's debt and support current and future operations.

Select Staffing will continue paying its 75,000 full and part-time workers and will avoid layoffs and branch closures.

The CEO of this family owned company says they are happy to keep their headquarters in Santa Barbara and that clients will continue to receive great service.