No matter how long a company in Pennsylvania may have been in business, sometimes the economic climate or a change in the industry forces the business to shut its doors once and for all. This may be necessary if the business owner’s liabilities exceed his or her assets, and there seems to be no way of getting out of the financial hole. One company in a nearby state ended up filing for Chapter 7 bankruptcy recently.
The company is a window company that had been in business for more than 60 years. It cited its liabilities as being more than $800,000 to nearly 30 creditors. PVC extruders constituted two of those creditors.
The company will stop operations and liquidate its assets totaling a little over $54,000. The assets include office equipment, a van and a truck. This will be done as part of the process of paying down debt to four of the company’s creditors, with two of these creditors being banking institutions. Secured claims are nearly $390,000. The company laid off eight of its 21 workers in December 2013.
The owner of the company said his window sales dropped by over a million and a half dollars during a period of three years. He is now going to concentrate on fences and vinyl rails instead. Filing for Chapter 7 bankruptcy can be a helpful way to move on from a struggling company by allowing assets to be marshaled, liquidated and sold, so that money goes to creditors and gets unsecured debt formally discharged. The business owner can then pursue other business interests in Pennsylvania.
Source: plasticsnews.com, "Window maker files Chapter 7 bankruptcy", Catherine Kavanaugh, July 17, 2014