by Companies represent a mix of suppliers including warehouse and logistics service providers to overseas furniture and hardware producers
WILMINGTON, Del. — The Top 30 unsecured creditors in the Walker Edison bankruptcy case are owed more than $18 million, according to the company’s recently filed Chapter 11 petition.
They represent a mix of suppliers, ranging from warehouse and logistics service providers to furniture and hardware manufacturers in China, Vietnam and Brazil.
An unsecured creditor is a company or institution that provides services or products without any guarantee of being repaid in the event of a bankruptcy. In order to achieve payment, the creditor must file a claim through bankruptcy or through other litigation.
In the case of a bankruptcy, it can collect some of its debts through a liquidation of certain borrower-owned assets.
The claims of the 30 top unsecured creditors total $18,355,863. However, this is just a portion of the $100 million to $500 million in liabilities cited in the company’s Aug. 28 Chapter 11 filing in U.S. Bankruptcy Court for the District of Delaware. It estimates there are between 1,000 and 5,000 individual creditors owed money in the case. The same filing cites assets between $10 million and $50 million, falling far short of the liabilities.
Walker Edison sells a line of ready-to-assemble furniture that includes bedroom, dining, occasional and accent furniture, TV consoles, sofas and sectionals, home office and outdoor furniture.
With an estimated $124 million in annual sales, the company sells to consumers directly on its website and also supplies various e-commerce platforms/retailers including Amazon, Wayfair, Home Depot and Walmart, to name a few.
Competitor Twin-Star International has been identified as a stalking horse bidder to purchase the company’s assets, including designs and other intellectual property.
At this stage, it’s uncertain how much unsecured creditors in the case will recoup, particularly given the large sums of money owed.
An inability of these companies to collect these massive debts could impact the relationship they have with the new owners moving forward, thus leaving the opportunity for competitors in the RTA segment to expand or form new relationships with those suppliers.
The Top 30 unsecured creditors and the amounts they are owed are as follows:
+ Kenco Logistic Services – $3,337,555.69.
+ Fortune Bonus Wooden Ltd. – $2,239,174.94.
+ Gibson, Dunn & Crutcher – $1,952,694.86.
+ Troung Vinh Co. – $1,304,472.35.
+ Hsien Yang Industries (Vietnam) – $1,303,367.53.
+ Artemobili Moveis – $1,186,845.73.
+ XPO Logistics Supply Chain – $904,690.29.
+ FedEx Corp. – $681,312.84.
+ Zhejiang Anji Huiye Furniture – $501,058.11.
+ Wei Qiang – $474,727.78.
+ Bonham Davis Warehouse – $441,801.52.
+ Consilio – $440,440.43.
+ Google – $331,148.65.
+ MSC Mediterranean Shipping Co. – $302,239.10.
+ E-Shine Enterprise Co. – $285,343.83.
+ CastleGate Fulfillment – $259,390.66.
+ Moveis Katzer LTDA – $224,127.94.
+ Idimex do Brasil Industria e Comercio de Moveis LTDA – $206,729.
+ Acosta Inc. – $200,398.46.
+ Crowe LLP – $198,254.96.
+ Scan Global Logistics – $193,403.45.
+ Moveis Serraltense LTDA – $187,691.08.
+ Workman Nydegger – $171,893.76.
+ Kenshoo Inc. (Skai) – $170,600.
+ Maersk Logistics & Services USA – $156,622.
+ P&P Moveis E Confeccoes LTDA – $152,050.20.
+ Hong Kong Wood Products – $143,275.32.
+ Ding Zhi Furniture Co. – $139,654.95.
+ Dongguan Her Sheng Pan Hardware Products – $133,271.34.
+ Rutan & Tucker – $131,635.33.
