Jump to Navigation

Customers upset as store files for Chapter 7 without notice

Tennessee residents who recently paid for items at the specialty store Professional Appliance Direct may be out of luck. The Johnson City appliance supplier abruptly filed for Chapter 7 bankruptcy on April 3 without notifying customers - homeowners who have already paid for their appliances in advance. Now many residents are without their appliances and their money and have filed police reports against the store.

A creditor seized all the company's bank accounts, forcing the store to file for bankruptcy protection. As a result, the company currently has no cash flow or money to make payments or order products. The company's assets are now part of a bankruptcy estate and a trustee will be appointed to distribute those assets.

Customers are understandably upset. They chose to buy their appliances from Professional Appliance Direct because of the specialty items they offered - items that can't be purchased at other home improvement stores. Sixteen customers have filed police reports so far, and 86 people are awaiting restitution from the financially troubled appliance retailer. Customers should receive notices in the mail and should follow the appropriate steps in order to receive any money they are owed. They should start by filing a claim with the Bankruptcy Court.

Debt is overwhelming for consumers and businesses alike. It can be a challenging situation to overcome alone, which is why many choose bankruptcy. For small companies struggling with debt, there's Chapter 7 for businesses. Chapter 7 can be an easy way to liquidate assets. Most debts will likely be discharged and the business owners can start fresh.

Source: WCYB, "Appliance store filed for bankruptcy," April 9, 2015

No Comments

Leave a comment
Comment Information

What's Your Situation:

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Subscribe to This Blog's Feed Visit Our Bankruptcy Website

Our Office Location:

Richard Banks & Associates

393 Broad Street, N.W.
Cleveland, TN 37364-1515
Map & Directions

Phone: (423) 244-0009
Toll Free: (866) 596-8527
Fax: (423) 478-1175

FindLaw Network

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.