Ohio residents may have recently heard about the struggles of a bath accessories supplier. The company, called Blonder, has filed for Chapter 7 bankruptcy. The filing, which happened on Dec. 19 in an Ohio district bankruptcy court, stated the company made less than $3 million to date this year. Their total assets were listed at nearly $3.2 million, but their liabilities were a little more than $4.7 million.

According to a news report, the company did not file for debtor-in-possession financing, which is typical when a company has plans to reorganize. This kind of financing would usually give a company funds in order to start fresh. Chapter 7 bankruptcy, which this company has filed, is used in order to liquidate assets. This type of filing can also be made by individuals in order to discharge most debts with no necessity of paying them back. On the other hand, a Chapter 13 bankruptcy filing gives the filer the opportunity to pay back debtors through a repayment plan.

As Blonder works to liquidate, it has a number of unsecured creditors on its list. The company owes wages and benefits to 48 employees, according to a news report. It also owes small amounts to a few home textile companies. Blonder owes about $6,500 to a Brazilian tower manufacturer, as well as a little more than $600 to a Taiwan towel company. Finally, the company is said to have produced a number of licensed lines, so it lists a licensing group as one of its creditors. Blonder owes a sum of about $11,000 to that company.

Source: Home Textiles Today, "Blonder files Ch. 7 bankruptcy," Dec. 28, 2011