norwood bankruptcy
At age 85, the last thing Virginia Norwood needed was to file for bankruptcy — during the past year, her husband died of cancer and Norwood and her daughter have struggled to hold on to their Dallas home. [1]
Domain Inc. will begin holding going-out-of-business sales today at all 27 of its stores less than one month after filing for bankruptcy protection. [2]
Jim Schaye, CEO of Hudson Capital, said the discounts will start at relatively small percentages off the items’ retail prices, and will get larger over the next few weeks. [3]
As of this month, people with financial plights such as Norwood’s face a bigger struggle as a new federal law takes effect and places limitations on personal bankruptcy filings. [1]
Domain, which does business as Domain Home, employed about 290 people a year ago, including 40 at its headquarters in Norwood. [3]
For the elderly, a group badly in need of debt erasure, higher legal fees are likely to be the big disincentives. [1]
The company partially blamed its bankruptcy filing last month on the stresses of operating the chain at a time of a slow economy and a downturn in the real estate market. [3]
Schaye said Hudson Capital and Great American have reached an agreement through the bankruptcy court to return 64 percent of the wholesale value of the inventory to Domain’s estate. [...] Hudson Capital Partners of Newton and Great American Group of Los Angeles are managing the liquidation sales. [...] All the stores will be closed once the clearance sales are over, the liquidation firms said in a statement. [2]
Legal fees for Chapter 7 bankruptcy now range from as low as $500 in some parts of the country to as high as $2,500 in metropolitan areas such as Chicago and Los Angeles, said lawyer James Cossitt, who conducted a national attorney fee survey. [1]
British kitchen appliance company Aga Foodservice Group sold Domain last year to a group of investors in a deal valued at $7 million. [...] That means Hudson Capital and Great American have agreed to recoup more than $5 million through the clearance sales or they will make up the difference, Schaye said. [2]
Experts estimate that these costs will double under the new law, and older debtors already struggling on limited incomes will be hard-pressed to come up with that money. [1]
Schaye said the entire inventory has a wholesale value of about $8 million. [2]
Sources:
[1] New bankruptcy law limits personal filings, debt relief
[2] Norwood’s Domain chain to liquidate inventory in sale - Norwood, MA …
[3] Norwood’s Domain chain to liquidate inventory in sale - Norwood, MA …