Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Handy Hardware Files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: February 5, 2013
Key Contacts
Back
Handy Hardware Wholesale, Inc., a dealer-owned hardware wholesale group operating in 14 states filed for Chapter 11 protection under bankruptcy law after a costly expansion straddled it with debt.
Handy filed for protection from its creditors in U.S. Bankruptcy Court in Wilmington, Delaware. The wholesale group has roughly 1,000 members, who wholly own the company, and 1,300 facilities that include retail hardware stores, home centers, and lumber yards. The group formed in an effort to make it more competitive against big box chains, such as Lowe’s and Home Depot. However, the company ran into financial trouble following its expansion into the southeastern U.S., according to Dow Jones Newswires.
Handy Hardware constructed a 460,000 square-foot distribution center and warehouse in Mississippi during the midst of the recession in 2009. As a result of higher costs taken on by the company to build the center, coupled with falling revenue that resulted from the down economy, Handy Hardware was unable to stay afloat and meet its operating costs. In 2011 alone, the company reported a loss of $8.4 million.
The company listed assets of $50 million and debt totaling $100 million in its court filing. In addition to bond debt, the company owes roughly $14.6 million to its largest secured creditor, Wells Fargo, the news source reports. Following the bankruptcy filing, Wells Fargo agreed to extend a $30 million dollar loan to the distressed company, which refinances the $14.6 million owed and offers $15.4 million in new financing, Dow Jones reports.
Although the company has not announced the specifics of its reorganization plan, members said they hope to emerge from proceedings in a stronger position, and still plan to operate as a member-owned company.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
New York NDA Requirements for Businesses
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
Author: Dan Brecher
New Jersey Will Contest Grounds Explained
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
Author: Marc J. Comer
Legal Issues Before Bringing on Investors
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
Author: Dan Brecher
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.