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
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
How Can Trusts Be Used in Business Succession?
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Author: George McGowan
Read Before You Sign: IT Contract Pitfalls Every NJ Business Should Know
In today’s digital economy, New Jersey businesses of all sizes rely heavily on technology vendors, software providers, cloud platforms, and managed IT services. Whether your company is purchasing software, migrating data to the cloud, engaging a cybersecurity consultant, or entering into a long-term managed services agreement, a careful IT contract review can have significant operational, […]
Author: George McGowan
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
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.