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: Indiana Civil & Business Lawyer

Another Indiana Receivership Case

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Good-bye, Today's Bedroom One, The Mattress Gallery and Today's Kids. But what I find most interesting in The Indianapolis Business Journal's Local bedroom retailer to be liquidated is the use of a receivership instead of bankruptcy.

The company, TBO LLC, was founded in 1978 and operates 16 retail locations in central Indiana. The stores have been closed since Tuesday, when the court appointed a receiver to sort out TBO's finances, close unprofitable locations, and recover money owed to Huntington and other creditors, if possible.
According to court documents, TBO owes Huntington $2.3 million on a line of credit the company stopped making payments on in early February. That prompted Huntington to file a complaint March 13, alleging breach of contract and requesting the properties be placed in foreclosure and the appointment of a receiver.

Locally based Gallivan Auctioneers & Appraisers is overseeing the liquidation.

I suspect this choice excites few except lawyers and maybe not even more than a few of us, it would be interesting to know why the choice was made to forego bankruptcy.

I have said this before on this blog (and you follow the links below next to the title Labels) - failing businesses need to examine their choices between state and federal law for liquidation as the latest Bankruptcy Code may not benefit the small business owner.

I am looking to take on receivership cases. Remember, if you want more information about retaining me for a case, please give me a call at 765-641-7906.

Full post as published by Indiana Civil & Business Lawyer on April 06, 2009 (boomark / email).