How to survive a Sampoong liquidations: The ‘blacklisting’ strategy
Posted On June 20, 2021
The following are some of the most common questions we’re hearing from readers and listeners in response to the news that The Sampoongs liquidation department store has shut its doors:1.
Is the company still listed in the company’s bankruptcy filing?2.
Will my money go to the company?3.
Will this be my last sale at The Sampos?4.
Will I get any liquidation proceeds?5.
How will I pay my bills?6.
What will happen to my family members?7.
Will the store reopen in another location?8.
Will there be a sale?
The answer to the first question and the answer to all the others is yes.
In a nutshell, the company filed for Chapter 11 bankruptcy protection in the U.S. District Court for the Northern District of California in Los Angeles on January 29.
The filing was filed by creditors of the company who had filed Chapter 7 bankruptcy protection agreements.
As part of the bankruptcy process, the creditors agreed to pay the company $1.3 million per month.
The company had been paying $300,000 per month in interest payments and the company was paying $200,000 monthly in cash and other liquidation-related charges, according to court documents.
The company filed its petition for bankruptcy protection under Chapter 11 because of a $1 billion writedown that occurred in November 2016 when the company, based in San Jose, California, closed its doors.
The writedeviation, which had been in place since April 2016, was expected to end on January 3, 2019.
The bankruptcy petition was filed in September 2017, but the filing deadline was not reached until December 2018, according the filing.
As of December 2018 the company had $8.3 billion in assets and was owed $1 million in liquidation funds, according bankruptcy court records.
It is unclear how much of that money will be paid by creditors and how much will go to The Sampoos, but The Sampons liquidation will likely result in a large payout for the company.
The creditors have agreed to the $1,300 per month liquidation fund, which will cover the liquidation expenses of The Sampozons, according their bankruptcy filing.
That $1 per month payment is more than the $2.4 million the company paid for its liquidation in August 2018, which was due to an unpaid balance of $1 for its debtors.
The Sampoons liquidation, however, will have a much smaller payout, as the company is likely to receive only about $700,000 from the liquidations of its creditors.
In order to pay off their debt, the lenders will have to repay all of the liquidator’s loans.
The remaining amount, which The Sampojans liquidation has to pay, will be used to cover the expenses of the debtors, according court documents, according with the filing for bankruptcy.
The total amount of liquidations to be paid out to creditors is not yet known.
In addition to liquidations and interest, the bankruptcy filing states that creditors will be required to make payment of all other liabilities, including insurance, taxes, and property.
For more information, visit the Sampoongs bankruptcy.com and see the bankruptcy filings of the other three companies mentioned above.
For more information on liquidation laws and court cases in your state, visit our state liquidation law pages.