Owner of H and H Bagels files for bankruptcy
Garden Operation Realty, the company that owns New York's famous H and H Bagels, announced it filed for Chapter 11 bankruptcy protection this week.
Garden Operation Realty, the company that owns New York's famous H and H Bagels, announced it filed for Chapter 11 bankruptcy protection this week.
The immediate reason for the filing was so that the owners could avoid being locked out of their New Jersey manufacturing facilities. A creditor recently won court permission to bar the company from the space until payments on delinquent debt were made.
In addition, the bankruptcy filing effectively stopped pending litigation against the company, protecting its assets so that Garden Operation Realty can reorganize its finances, The Wall Street Journal reports. The company cited both assets and liabilities in the $1 to $10 million range.
"The debtor's business has been increasing as the economy improves the debtor's busiest season, approaches," H and H Bagels president and founder Helmer Toro said in court papers, according to the news source. "The debtor anticipates that by continuing in business under the protection of the bankruptcy court it can be profitable and confirm a plan of reorganization."
The company also said the filing was due to expensive litigation, and the economic downturn, both of which had reduced profits in recent years.
Need Help Filing Bankrutpcy?
Complete the form below and an attorney near you will call you to discuss your options. The form only takes a few minutes to complete, so get started now!
Like this article? Please link to it using the code below:
These articles are all written by BankruptcyHome.com's great editors and contributors. If you would like to write articles for BankruptcyHome.com, please email editor[at]bankruptcyhome.com.
Related Articles
Is Bankruptcy Right For You?
If you are ready to find out if Bankruptcy can help improve your financial situation, the best place to start is our Free Case Evaluation form. Complete the form below and an attorney near you will call you to discuss your options. Bankruptcy law differs from state to state so it's important that you discuss your case with a local bankruptcy attorney. The form only takes a few minutes to complete, so get started now!