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WILMINGTON, Del. – The Mitchell Gold + Bob Williams bankruptcy case has been converted to Chapter 7, a liquidation under the U.S. Bankruptcy Code, a month after the company filed for Chapter 11 bankruptcy protection with the court here.
Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court of Delaware ruled Friday that the case be converted from Chapter 11 reorganization to liquidation. The company has two weeks to share records of its assets and liabilities with the interim bankruptcy trustee and a month to file a complete report.
In her order, Silverstein said the conversion of the case to Chapter 7 was in the best interest of the debtors, their estates, creditors and all other interested parties.
Court documents tell a story of back-and-forth between the company and its lead secured creditor PNC Bank. Attorneys for Mitchell Gold + Bob Williams were arguing for a reorganization under the bankruptcy laws that would allow some customers to receive orders, while the bank wanted a quick sale of the company’s assets.
In August, the company quickly shuttered its doors, alerting employees with notes on the gates to its facilities leaving more than 500 workers in North Carolina out of jobs. Two weeks later, on Sept. 6, Mitchell Gold + Bob Williams filed for bankruptcy protection.
Ahead of the closure, the private equity group The Stephens Group said it had invested an additional $20 million into the company to help it continue operations. That cash infusion didn’t help.
