Many a successful business has fallen prey to the adverse economic conditions of recent years. One such Michigan company was reportedly listed among the top 100 private companies in Birmingham. A toy manufacturer, Summit Products LLC, with its headquarters based in Birmingham’s Southside, has recently filed for the protection of Chapter 7 bankruptcy.
The toy company is currently offered for sale as part of the asset liquidation process. The asking price is reported to be $2.2 million. The core brands of Summit Products LLC are Backyard SafariTM and ZikkionzTM, and they are offered for sale on Amazon, along with retail chains such as Toys-R-Us, Wal-Mart and Target and other specialty stores nationwide. Summit Products reported their assets to be $1.6 million, and their liabilities were listed at over $6.8 million.
The company’s biggest two creditors hold unsecured debt of $834,946 and $759,581 respectively. Because Chapter 7 bankruptcy discharges all unsecured debts of the applicant, the claims of these two creditors will be discharged. Chapter 7 bankruptcy protects individuals and businesses from creditor harassment, foreclosure and repossession, along with wage garnishment and lawsuits. Non-exempt assets will be sold and the proceeds distributed to creditors.
Researching the state laws regarding bankruptcy protection may be beneficial for Michigan individuals or businesses whose financial situation has become overwhelming. This knowledge may serve as preparation for the legal requirements and processes that will follow. The opportunity to apply for Chapter 7 protection under the bankruptcy laws may afford those who were without hope to start over and to re-establish a secure financial future.
Source: bizjournals.com, “Summit Products files Chapter 7 bankruptcy“, Antrenise Cole, April 3, 2014