06 Nov
Posted by: Andrew Bunbury in: Bad Credit News
A security company in Hawaii and an animal clinic in Pennsylvania are among the latest companies to file for Chapter 7 bankruptcy protection, as businesses continue to struggle to stay afloat.
Freeman Guards Inc. in Hawaii is filing for Chapter 7 bankruptcy, marking the end of the line for the company that had been doing business since 1972. The Chapter 7 liquidation caused the very quick lay off of around 200 employees with very little notice, according to an article from KHON.
The company had been trying to arrange an acquisition by Securitas USA. But that fell through, leaving Freeman Guards Inc. without a safety net, and leading to the bankruptcy protection filing.
“It’s a family tragedy,” said David Farmer, the bankruptcy trustee that has been appointed by the state to administer the liquidation. “It’s more than just a business and employees. They feel very, very bad about it.”
The regional president of Securitas USA, Tony Sabatino, said that they had tried to find a solution to the problem given the short amount of time that they had to work out a deal. But in the end Securitas wasn’t able to make a formal offer. With that, the discussions ended.
The University of Hawaii at Manoa has had to quickly make arrangements to replace the security personnel that Freeman had provided to protect the campus until the sudden liquidation.
“They provided security for our parking system, that included not only access control but also parking enforcement,” said Wayne Ogino, the security chief on campus. “Being in security we’re always ready for the unexpected, so it was a surprise, but you know we’re ready for it.” There were around 16 employees on the campus on weekdays.
Other Freeman employees were stationed at the airport in Honolulu, on the Big Island and on Maui.
In Wilkes-Barre, Pennsylvania, the Animal Emergency Clinic of Wyoming Valley has filed for Chapter 7 bankruptcy after a business manager was charged with theft and debts piled up, according to an article from The Times Leader.
In its filing, the company listed almost $3 million in liabilities. In 2008 and 2009, it listed an income between $3.4 and $3.7 million.
The clinic had provided emergency vet care around the clock and emergency surgical capability.
This is not the first time that the clinic has faced financial turmoil, and a tough turn in the headlines. In April former business manager Patti Lynn Spickerman was charged with stealing just over $3,000, and she faces arraignment soon.
The clinic’s president did not return call from The Times Leader.
Much of the debt is owed to creditor First Liberty Bank and Trust out of New York state. This accounts for around $2.25 million of the overall liability. The clinic also owes money to Blue Cross of Northeastern Pennsylvania, the Department of Labor and Industry, the local tax bureau, a pet memorial service and a vet supply company.
The filing took place in U.S. Bankruptcy Court for the Middle District of Pennsylvania.
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