WILMINGTON, Del. – The Mitchell Gold Co. has filed for protection under Chapter 11 of the U.S. Bankruptcy Code citing assets and liabilities of between $10 million and $50 million.
The company, which suddenly shut down Aug. 25 telling employees the business couldn’t secure needed funding via a sign on the factory gate, said in the bankruptcy petition that funds would be available for distribution to unsecured creditors. The company estimated its number of creditors to be between 200 and 999.
The filing said the abrupt closure was necessary when PNC bank denied funding, and at that time the company ceased accepting customer deposits at all store locations.
In its filing, the board of The Mitchell Gold Co. has approved the appointment of Dalton Edgecomb, senior managing director of Riveron, a consulting company, to act as chief restructuring officer.
The petition indicates that the company has “preliminarily secured Debtor In Possession financing” to preserve its assets, and the company said it has “received multiple third party expressions and indications of interest for groups of assets and individual assets and believes there is value in its assets including leaseholds, equipment and intellectual property in an amount sufficient to pay off any obligations to senior lender whose liens shall attach to proceeds …”