When individuals or businesses are faced with financial woes, there are many options for reorganizing assets and handling debts. Bankruptcy is one option, but bankruptcy exemption and Wisconsin’s alternative Chapter 128 are just two other routes that could be considered. The American TV & Appliance retail chain, which owned 11 stores in the state, opted to file Chapter 128 when it was facing financial issues. The filing let the company liquidate assets and use that liquidation to pay creditors.
As part of the liquidation, the company sold some of its stores. Steinhafels, a furniture company, bought three of the stores. The purchase was conducted through a court auction and finalized on Monday, April 21.
According to documents, the bid on the three stores totaled $12.75 million. The furniture company plans to renovate the stores to create retail spaces that match its brand. One of the company’s owners reached out to two other furniture store owners to let them know the company would be moving into the area. According to reports, the other owners are friends of the family and he didn’t want them to hear the news through the grapevine.
The furniture store put notices of jobs up on its website. It hopes to attract the attention of former American TV & Appliance employees before they all find new jobs. At least one of the American TV & Appliance locations ended a going-out-of-business sale in early April.
The chief executive officer of American TV & Appliance issued a statement regarding the purchase. He said the company is satisfied with the exchange and feels there are similarities between the companies. He stated he thought the stores and any employees were in good hands.
Source: The Post Crescent, “The Buzz: Steinhafels buys American TV store in Grand Chute” Maureen Wallenfang, Apr. 22, 2014