Building 19 chain files for bankruptcy
The company and its affiliates are seeking permission to conduct "going out of business" sales to liquidate assets, according to court documents filed Friday in U.S. Bankruptcy Court in Boston.
"Since much of Building 19's inventory consists of surplus, salvage goods, overstocks, closeouts and irregulars that become available erratically, Building 19's business model relies, in part, on having sufficient working capital on hand to make erratic inventory purchases. Building 19's lack of working capital impaired its ability to capitalize on erratic opportunities to purchase inventory."
A manager at the Manchester store on Saturday referred questions to the company's Hingham, Mass., central office, but she said rumors that the store was closing were "not true."
And a store manager in Weymouth, Mass., who gave his name only as "Raj," said he hadn't heard anything about the store going out of business. "It's news to me," he said.
In its bankruptcy filing, the company is seeking the court's permission to pay its employees any outstanding wages and benefits through Nov. 3 and to honor unused vacation and sick time that accrued through Friday.
Court records show that Building 19 and its affiliates have signed a contract with Gordon Brothers Retail Partners LLC to conduct "going out of business" sales at the company's stores. Building 19 has asked the bankruptcy court to approve that agreement and allow the sales to proceed.
It also owes sales taxes to Massachusetts and Rhode Island in the amounts of $136,000 and $30,000, respectively. The company's affiliates owe an additional $32,000 in sales taxes.
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