A POPULAR local home improvement has announced it filed for bankruptcy last week.
American Overhead Door, based in Colorado, filed for Chapter 11 bankruptcy citing debts over $3million.
The garage door company added that it had $748,000 in assets, according to bankruptcy files signed by owner Gary DeJong.
This news comes as the business made $8million in revenue last year, according to BusinessDen.
Last year’s revenue had fallen when compared to previous years, as the company also made $3.4million from January until the date that bankruptcy was filed.
A company spokesperson, who wanted to remain unnamed, told The U.S. Sun that they will not be shutting their seven locations.
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The spokesperson said: “It is Chapter 11 but it’s actually reorganization so we’re not shutting down our doors or anything.
“It’s just a reorganization.”
Chapter 11 bankruptcy would allow the company to continue operating while restructuring and paying creditors over time.
The majority of the company’s creditors are nearly 250 customers who are waiting for paid work to be completed.
These owed customer jobs range between a few hundred dollars and nearly $40,000 in value.
The company also owes some employees $80,972 in unpaid bonuses, retirement contributions, and vacation pay.
DeJong acquired the 40-year-old business in 2010 and he reduced the business’ size to seven locations in the state.
The company offers a number of services and products from garage doors and security doors to custom designs or emergency repairs, according to its website.
The U.S. Sun has previously reported on a number of companies across the US that have filed for bankruptcy.
Blue Harvest Fisheries, the East Coast’s largest groundfish company, filed for bankruptcy on September 8.
The company, based in New Bedford, Massachusets, was founded in 2015 but stopped operations on September 1.
Sunac, a major Chinese property developer, filed for bankruptcy in the US on Tuesday.
The company had defaulted in 2022 after it was unable to make payments on its debts and interest on time.