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
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
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.