An owner, who operated a number of businesses, including restaurants in Florida, recently filed for Chapter 7 bankruptcy. His wife is also listed as a joint debtor. As of now, his Swisshelm Group, Inc., answering machine message claims the office is closed for good.
In the 92 page bankruptcy filing, the couple lists 16 businesses that the husband operated. Of those businesses that are owed debts, employees and suppliers of Horned Frog Deli, which operates under the name McAllisters Deli in a number of Florida locations, is listed.
Other liabilities also listed include gambling debts, unpaid taxes and money owed to a number of banks. A property, which is solely in the wife’s name, is also only worth $150,000, but has $1.2 million in debt claims against it.
In total, the Chapter 7 bankruptcy filing claims $17.6 million in liabilities, but just $7.62 million in assets. There are also more than 100 creditors listed on the filing. The couple claim to bring in a monthly income of around $550 a month, but have monthly expenses that total $4,200 a month.
According to the filing, the couple has agreed to give up their $500,000 home, which they had used as collateral for millions of dollars worth of loans.
When looking at this case, especially the sheer difference between income and expenses, it is quite clear that the couple is in desperate need of financial help. With a Chapter 7 bankruptcy filing, typically the hope is that assets will be liquidated in order to pay back creditors and that some debts will end up being discharged.
Source: Springfield News Leader, “Swisshelm Group, operator of several Springfield restaurants, files for bankruptcy,” Wes Johnson, March 29, 2012