Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Handy Hardware Files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: February 5, 2013
Key Contacts
Back
Handy Hardware Wholesale, Inc., a dealer-owned hardware wholesale group operating in 14 states filed for Chapter 11 protection under bankruptcy law after a costly expansion straddled it with debt.
Handy filed for protection from its creditors in U.S. Bankruptcy Court in Wilmington, Delaware. The wholesale group has roughly 1,000 members, who wholly own the company, and 1,300 facilities that include retail hardware stores, home centers, and lumber yards. The group formed in an effort to make it more competitive against big box chains, such as Lowe’s and Home Depot. However, the company ran into financial trouble following its expansion into the southeastern U.S., according to Dow Jones Newswires.
Handy Hardware constructed a 460,000 square-foot distribution center and warehouse in Mississippi during the midst of the recession in 2009. As a result of higher costs taken on by the company to build the center, coupled with falling revenue that resulted from the down economy, Handy Hardware was unable to stay afloat and meet its operating costs. In 2011 alone, the company reported a loss of $8.4 million.
The company listed assets of $50 million and debt totaling $100 million in its court filing. In addition to bond debt, the company owes roughly $14.6 million to its largest secured creditor, Wells Fargo, the news source reports. Following the bankruptcy filing, Wells Fargo agreed to extend a $30 million dollar loan to the distressed company, which refinances the $14.6 million owed and offers $15.4 million in new financing, Dow Jones reports.
Although the company has not announced the specifics of its reorganization plan, members said they hope to emerge from proceedings in a stronger position, and still plan to operate as a member-owned company.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
New Jersey’s Next Manufacturing Tax Credit: Stability Secured, Timing Matters
A Settled Regulatory Environment Enables Confident Capital Planning New Jersey’s new manufacturing incentive program, Next New Jersey Manufacturing Program, enters 2026 with something uncommon in economic development these days: policy stability. The statute is enacted, New Jersey Economic Development Authority’s (“NJEDA”) rules are adopted, and the application portal is open. With the election outcome settled, […]
Author: Michael J. Sheppeard
A Simple Guide to Industry Roll-Up Acquisitions
When done successfully, industry roll-up acquisitions can dramatically grow and strengthen your business. In this post, we break down what an industry roll-up is, why companies pursue it, and what makes it an effective (and sometimes risky) business strategy. What Is an Industry Roll-Up Acquisition? In an industry roll-up acquisition of companies, a buyer acquires multiple companies […]
Author: Dan Brecher
Genesis Mission: How the U.S. Government’s New AI Platform Will Reshape Corporate Innovation, Risk, and Competition
The federal government has launched one of the most ambitious scientific initiatives in decades, and it will redefine how companies develop technology, manage risk, and compete. The Genesis Mission, created by Executive Order and driven by the Department of Energy (“DOE”), is intended to accelerate scientific discovery through a national AI platform that links supercomputers, […]
Author: Michael J. Sheppeard
Stablecoins and the GENIUS Act: How New Global Rules Are Reshaping Compliance
Stablecoins Leave the Grey Zone Stablecoins were supposed to be the “boring” part of crypto: digital dollars that just work. Yet for years they have lived in a regulatory no-man’s-land, classified one day as securities, the next as commodities, and sometimes as something regulators had not even named yet. That uncertainty is finally starting to […]
Author: Bryce S. Robins
Don’t Overlook the Importance of Business License Management
If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]
Author: Dan Brecher
Failing to Comply With NJ Rent Control Exemption May Prove Costly
What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing. A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.