'The wheels came off' cries shopper as beloved appliance retailer closes all stores after company files bankruptcy | 0822E2G | 2024-04-26 17:08:02
HIGH-END appliance brand Pirch filed Chapter 7 bankruptcy after shutting all its locations.
The company's furniture showrooms went into "temporary" closures in March.
Now, the company is liquidating assets, meaning some or all of the locations will stay shut.
Pirch has 6 showroom locations, all in California.
It filed Chapter 7 bankruptcy in U.S. Bankruptcy Court on April 19.
Chapter 7 is a legal process that repays debts while taking a company entirely out of business.
Shutting down operations allows a company in debt to sell off buildings and other assets to help repay creditors.
Company officials told employees last week that they would shut down for good, Orange County Register reported.
The company has refund and order information available on its website.
FURNITURE FUMBLE
The company's top-line appliances and furniture did not manage to keep it afloat.
Pirch's assets are worth between $10 million and $50 million, according to court filings.
However, the number pales in comparison to its debts, totaling between $100 million and $500 million.
<!-- End of Brightcove Player --> Pirch is also facing heavy lawsuits from a number of business associates, including American Express, Retail Dive reported.
The bank claims that Pirch owes it millions of dollars.
American Express also said the company stopped communicating with them entirely in advance of the suit.
Now, bankruptcy courts will help sort out Pirch's financial situation.
Shoppers took to Facebook to share their sorrow.
"We purchased all our kitchen appliances from Pirch and received them promptly," one shopper commented under OC Register's story. "Good customer service and hospitality. At some point, the wheels came off the wagon. I don't know how or why but it's a shame."
"Is it weird that yesterday morning I was standing in that entrance thinking, 'how in the world does this store stay open?'" another said.
MORE BANKRUPTCIES
Chapter 7 marks the end of a business, but not all bankruptcies are so drastic.
Many companies instead file Chapter 11 bankruptcy, which helps them reorganize.
<p class="article__content--intro"> Bankruptcy is a specific legal process that helps companies eliminate debt they can't repay. </p> </div> </div> Chapter 11 can involve liquidating some assets, but companies that file this way generally aim at staying open.
Rite Aid recently filed Chapter 11, selling off dozens of stores in the process.
Fashion retailer Express is also bankrupt, filing Chapter 11 this week.
Jo-Ann, formerly Joann Fabric, recently filed bankruptcy as well.
More >> https://ift.tt/dwBGYMl Source: MAG NEWS
