Filing occurs just under 2 weeks after the company abruptly ceased its manufacturing and retail operations
TAYLORSVILLE, N.C. — Luxury furniture manufacturer and retailer Mitchell Gold Co. LLC has filed for Chapter 11 bankruptcy protection, just 12 days after abruptly shutting its operations in and outside of North Carolina that put hundreds of people out of work.
The filing lists assets of $10 million to $50 million and debts of $10 million to $50 million, although sources have told Home News Now that its debts are believed to be several times higher than its assets.
The company shuttered operations Aug. 26 after it was unable to secure critical financing from its lender, PNC Bank. It said that wages and other compensation owed to workers had been believed to be secured from PNC on numerous occasions, but that this was rejected as of Sept. 1.
As part of the restructuring planned as part of its petition, the company said it will hire a chief restructuring officer to carry out duties as instructed by the company’s CEO or the board. It also said it has preliminarily secured debtor-in-possession financing to preserve its assets and that it has received some interest from parties interested in various groups of assets or individual assets which include leaseholds, intellectual property and equipment, of which the sale could pay off any obligations to its senior lender.
The company said it also has hired Charlotte, North Carolina-based Stump & Co. as consultants and financial advisers related to the Chapter 11 case.
In its Chapter 11 filing, the company said that it also ceased taking deposits at all its retail locations and online on the morning of Aug. 25, following PNC’s decision to deny further funding. Store managers also were instructed to not take deposits or payments from customers other than those that could be carried out of the stores directly. On its website, it lists some 27 locations in the U.S. and Canada.
After the company ceased its manufacturing operations, Home News Now tried to contact a number of its retail stores both on the East and West Coast and central parts of the U.S. However, calls were either not returned or the voicemail systems were full.
According to the Chapter 11 filing, the company owes about $10.8 million to its Top 30 unsecured creditors. They are as follows:
+ Transportation Insight – $3,917,554.29
+ Nahan Printing Inc. – $554,589.84
+ Ryder Last Mile Inc. – $490,940.22
+ Need It Now – $490,306.44
+ Cigna – $419,864.25
+ Interstate Foam & Supply – $385,843.04
+ Cylindo – $316,032.42
+ Danao Living (LK Design Inc.) – $303,701.78
+ Carpenter – $297,555.66
+ J.B. Hunt – $284,381.10
+ Global Response – $284,344.08
+ Moore & Giles – $277,984.47
+ Fenom Digital LLC – $238,565.24
+ Healthstat Inc. – $218,083.71
+ Ideal Frames d/b/a Ideal Frame – $184,092.98
+ Carolina Casting Inc. – $175,206.96
+ Hudson Valley Lighting Group – $173,758.84
+ Locke (HK) Co. Ltd. – $167,756
+ Ramsey’s Finishing Inc. – $166,361.15
+ Kravet Inc. – $153,616.50
+ Queen Transportation LLC – $153,2727.52
+ Hilco Merchant Resources – $152,362.40
+ Harlee Packaging Components – $139,509.68
+ Surya Carpet Inc. – $138,026.65
+ Stone & Leigh – $136,161.13
+ Framewright Inc. – $136,146
+ Phuc Thang Fine Furniture – $135,657
+ Global Textile Alliance – $129,274.06
+ Content Square – $125,535.18
+ H. Nicholas & Co. Joint Stock Company – $123,401.93
The filing states that funds will be available for distribution to unsecured creditors, but did not specify an amount.
Efforts to reach company principal Mitchell Gold have been unsuccessful. Home News Now will continue to update this story as additional information becomes available.