San Jose Bankruptcy Attorney comments on the rise, collapse and bankruptcy liquidation of the InkStop store chain.
San Jose Bankruptcy Attorney comments on the rise, collapse and bankruptcy liquidation of the InkStop store chain.
InkStop, which promised to change the way Americans shopped for ink and toner, has undergone a demise nearly as spectacular as the company’s rise. In four years InkStop went from an idea to a 14-state operation with 152 stores. The company closed its doors on October 1 and filed for Chapter 7 bankruptcy protection. The company listed more than $48 million in debts to more than 1,000 creditors.
The debts include more than $1.1 in wages, vacation, and expense reimbursements owed to 456 employees who are still waiting for their final paychecks. Depending on how much the Chapter 7 liquidation process brings in, the employees have no idea when, if ever, they will see their paychecks.
The company had a simple concept that unfortunately ran into some management issues and an economic storm that dried up lending sources just as the company was supposed to become profitable. The economic collapse of 2008 and subsequent freezing of the credit markets dried up the lending sources and made it impossible for the company to pay its vendors. Without cash flow, there was no way to keep InkStop in operation. The company gave the employees one day’s notice that the stores would not be opening the next day and filed for bankruptcy protection.
InkStop’s employees and creditors are in for an uncertain future. And many of them are still looking for paychecks that may not ever arrive.
InkStop started with a bang and ended with a bust, www.cleveland.com, December 21. 2009
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