Bankrupt Retailer Now Leaves People With Their Money Stuck
A bankrupt retailer now leaves people with their money stuck as forced liquidation complicates customer orders.
Furniture maker and retailer Mitchell Gold Co. converted from a Chapter 11 bankruptcy to a Chapter 7 liquidation which led thousands of shipments to customers ‘stuck in warehouses’.
Logistics providers held thousands of products as they awaited delivery payments from the bankrupt company.
That included Ryder, which said it had more than 2,000 Mitchell Gold products at its warehouses.
Now, Mitchell Gold Co. and Ryder Last Mile have come to a deal on how to handle undelivered products to customers who had already paid for their orders, according to an Oct. 20 court filing.
However, for customers with their money stuck in undelivered orders, it will mean putting extra money out.
The agreement between the companies allows for customers to pay for their own shipping so that Ryder will release and deliver their purchases in cases where the product has already been paid for.
“We wish to acknowledge the considerable frustration that the [Mitchell Gold Co.] shut-down may have caused you,” Ryder said in a letter it proposes to send out to customers.
“Applicable bankruptcy law prevents Ryder from delivering any furniture in our possession without the agreement of the Trustee, certain lenders, and the approval of the United States Bankruptcy Judge overseeing the Bankruptcy Cases.”
When the company, which owns the Mitchell Gold + Bob Williams brand, filed for bankruptcy, it estimated $6.5 million worth of merchandise was being held at third-party facilities awaiting delivery and another $17 million stuck at its own facilities.
Many purchases were made months before the bankruptcy filing, which meant Mitchell Gold would pay Ryder for its shipping.
However, by then it was too late and the company became insolvent.
Also Read: A US Company Now Declares An Unexpected Bankruptcy
Other Economy News Today
Florida now has massive departures as residents leave the state according to the latest data from the U.S. Census Bureau.
Nearly 23,000 people per month departed from Florida in 2022, which is a whopping 275,666.
According to the Census, the most relocated places were Georgia (46,884), North Carolina (42,301), Tennessee (36,200), South Carolina (31,456) and Texas (29,975).
One of the biggest reasons for the Florida exodus, at least according to former residents, is primarily due to the state’s increasingly high insurance.
Joan Keenan is a retired Illinois teacher who moved to Florida two years ago with her husband, who retired from fire service, to live their “retirement dream.”
But “the insurance in Florida is a nightmare,” she told Newsweek.
“Due to the insurance rates going up, we have a different financial dream these days,” Keenan said.
“We live in a small one-bedroom condominium (890 sq. feet) on the intercoastal waterways of Treasure Island,” she added.
“Since we moved here our Association fees have gone from $446.00 dollars a month to $656.00.”
Linda—who preferred to kept her last name anonymous—was born and raised in Brooklyn, moved from New Jersey to Florida in 1983 and thought she had “died and gone to heaven.”
But in August this year, Linda sold her house in Palm Beach County and moved to Pennsylvania, after getting tired of her homeowner’s insurance “not being renewed and being moved to Citizens, not to mention the price increases every year.”
This, in addition to “the worry about the ever-increasing threat of more devastating hurricanes every year, got to be too much.”
“Politics, in Florida, also added to my desire to get out,” Linda said.
Also Read: California Now Has Massive Departures As Hundreds of Thousands Leave
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Mitchell Gold and his partner Bob Williams were excellent industry leaders of fashion forward furnishings. They sold their ownership to new management (Private Equity) which quickly drove the company in the ditch with leverage. Their reputations are and should remain impeccable.
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