Abbey Design files for bankruptcy; $3.5M in debt
- Published on 11/15/2012 - 1:57 pm
- Written by Business Journal staff
Fresno's Abbey Design & Flooring Center has filed for Chapter 7 bankruptcy protection, claiming nearly $3.5 million in outstanding debt.
The business is owned by Gary and Glennyce Cropper. Chapter 7 bankruptcy clears a path for a liquidation of assets, while a Chapter 11 bankruptcy provides for reorganization. The business previously filed for Chapter 11 bankruptcy protection in 2001, according to court records.
According to the Chapter 7 petition filed in federal court Nov. 7, the Croppers reported $433,950 in assets. They owe creditors more than $1.1 million in secured claims and more than $2.3 million in unsecured claims.
The filing comes on the heals of numerous debt claims by customers and contractors of the North Fresno business, which suddenly closed its doors a couple of weeks ago.
The Better Business Bureau serving Central California has received a total of 25 complaints against the company with a combined estimated value of $288,947.
According to the bankruptcy petition, creditors holding claims against Abbey Design & Flooring include: Vericrest Financial in Dallas, owed $614,822 for a deed of trust on a residence; the City of Fresno, owed more than $9,000 in business debt; Fresno resident Rebecca Pafford, owed $80,000 in business debt; Fresno resident Herman Toews, owed $220,000 in business debt, Westamerica Bank, owed $750,000 for personal guarantees and a second deed of trust on a residence and Aivazian Family, LLC, owed $283,693 for a personal guarantee.
The business also owes hundreds of thousands of dollars to the Internal Revenue Service.