Cataloger and retail store operator J. Peterman, Lexington, KY, filed on Monday for protection under Chapter 11 of the U.S. Bankruptcy Code in the Eastern District of Kentucky Bankruptcy Court.
The action will allow the company to continue operations while it tries to regain financial stability.
A capsule report from Hoover’s Online indicated that the company had 1997 sales of $65 million. But more current published reports indicated that the company’s sales had dropped to $50 million in 1998.
In 1997, reports had founder John Peterman, who was riding the crest of having his catalog featured on NBC’s “Seinfeld” television show, anticipating a retail reach of between 50 and 70 stores. The company currently operates 13, which are located throughout the United States.
Company representatives were not available for comment at deadline.
Matt Chilcutt, owner of Peterman’s list brokerage and management company Chilcutt Direct Marketing, Oklahoma City, OK, said Peterman owes “approximately $100,000,” to list owners and managers for lists ordered through Chilcutt.
About eight list managers and 13 list owners are owed money, according to Chilcutt.
While admitting that he is worried, Chilcutt observed, “It’s probably just a drop in the bucket [for what Peterman owes overall].”
Peterman had called Don Chilcutt, founder of the company, to tell him of the bankruptcy filing personally. The news took the list management company by surprise. “We were aware that fall holiday sales were off from projections. But we didn’t hear anything else either way [until the phone call],” said Matt Chilcutt.
Commenting on media reports quoting Peterman as saying he thinks the company will get financing in the future, Chilcutt said, “I think it’s highly likely. Who [would finance] I can’t tell you. I don’t know. I think that he’s a very capable person to make that happen. I think that it’s still an attractive company to potential investors.”
Chillcut is the catalog’s exclusive list broker, and manages the buyer’s file which contains more than a quarter of a million names.
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