StyleSite Marketing Inc., Teaneck, NJ, parent company of Lew Magram catalog and Brownstone Holdings Inc., has filed a list of its 20 largest unsecured creditors after declaring Chapter 11 bankruptcy protection earlier this month.
The list of unsecured creditors includes, St. Joseph Printing, Concord, Ontario, which is owed $1 million; World Color, Greenwich, CT $759,678; St. Joseph Press, Concord, Ontario $613,764; Color Systems Inc., St. Louis, MO $430,545; MBS/Multimode, Central Islip, NY $197,173; Direct Action, New York $188,135; United Parcel Service, Hagerstown, MD $138,822; Mail Well Graphics, Phoenix, AZ $131,272; Call Center Services, Salisbury, MD $127,768; Donnelley Marketing, Omaha, NE $99,237 and Finkelstein Marketing, Haworth, NJ $87,130.
Papers on file in United States Bankruptcy Court for the Southern District of New York list total liabilities of $34.2 million including $19.3 million in unsecured claims and $17.5 million in secured claims.
Secured claims include $10.7 million to First Source Financial and $5.3 million to Finova Capital. StyleSite assets were listed as $35.2 million including $10.5 million in inventories and $2 million in accounts receivables.
The identities of hundreds of other creditors are expected to be made public in the coming weeks, according to Neil Siegel, an attorney representing StyleSite.
While staffing at the companies has been dramatically reduced plans are underway to increase the staff and to acquire funding for the reorganization.
In addition to the bankruptcy filing, Brownstone Holdings was also in court earlier this month at a hearing before the New Jersey Division of Consumer Affairs answering consumer fraud charges. The charges include making false promises to customers about delivery times, shipping orders late or not delivered at all, and failing to make refunds as promised.
The suit seeks unspecified consumer refunds and civil penalties of $47,600 for each alleged violation, resulting from 546 complaints.
Lew Magram Ltd. had acquired the assets of Brownstone Studios Inc., after the latter filed for bankruptcy protection in 1997. Brownstone Holdings is a wholly owned subsidiary of StyleSite Marketing.
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