Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Star Group Communications & Chapter 7 Bankruptcy Protection
Author: Joel R. Glucksman
Date: November 10, 2015
Key Contacts
Back
Choppy waters for Star Group Communications
Star Group Communications, the largest female-owned marketing agency in the U.S., announced recently that its creditors are seeking to force the company into Chapter 7 bankruptcy protection. According to the Philadelphia Business Journal, the New Jersey-based company had closed down after 30 years of operation.
Star Group’s creditors pushed for Chapter 7 filing
Three of Star Group’s largest creditors filed an involuntary petition against the company in U.S. Bankruptcy Court in New Jersey. The creditors listed the company’s insolvency for several months as the reason for its filing against Star Group.
In court papers, Echelon Title stated that it was owed $1.61 million, Spongecell was owed $66,638 and Interstate Building Maintenance Corp. was owed $6,424. According to an interview with the Philadelphia Business Journal, Jeffrey Kurtzman, an attorney for Klehr Harrison Harvey Branzburg representing the creditors, explained that the value of the liquidated assets will be distributed among the creditors.
“We’re trying to capture the value of whatever was transferred and reallocating that to the legitimate creditors of Star, which were left holding the bag when the company shut its door,” Kurtzman stated.
In accordance with the court summons, Star Group was given 21 days to respond to the involuntary petition.
Star Group closes its doors
On July 2, Star Group officials sent out a memo to its 170 employees in Philadelphia, New York and Las Vegas to inform them that the company was to abruptly shut down, according to a Philly.com report. In the memo, the company stated that it was forced to shut down, but that it planned to re-open its doors once it secured capital financing.
At its peak, the company boasted Comcast, Teva Pharma, the Wharton School at the University of Pennsylvania, Fox Rothschild and Tropicana Entertainment casinos as clients. According to Ad Week’s AgencySpy blog, the failed merger between Comcast and Time Warner Cable, which resulted in significant layoffs at Time Warner Cable’s ad agency, Goodby Silverstein & Partners, could have sent the Star Group into insolvency.
The future of Star Group after the Chapter 7 filing
The creditors want the involuntary filing to help them recapture the debt and the transfers they are owed from Star Group. As part of the Chapter 7 filing, upon approval from the court, Star Group would be forced to liquidate its remaining assets through a court-appointed trustee.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
- 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
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Author: Wendy Rubinstein Quiroga
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future
For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]
Author: George McGowan
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Author: George McGowan
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.