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