SAN DIEGO (FOX 5/KUSI) — About a month after suddenly going out of business, luxury electronics retailer Pirch has filed for Chapter 7 bankruptcy.
Customers and employees said all stores across San Diego, Orange County and Los Angeles were closed without warning.
“It's unusual for a company to be put under emergency Chapter 7,” said bankruptcy attorney Arlen Tiller.
Only preliminary documents have been filed in U.S. Bankruptcy Court, and only a partial summary or estimate of Pilch's financial situation exists at this time.
Mr. Pilch lists approximately 1,000 to 5,000 creditors, assets of $10 million to $50 million, and debts of $100 million to $500 million.
“Based on the five-page document, it appears that the amount owed to creditors is much less than the amount owed,” Tiller said.
Tiller said there is more paperwork that needs to be submitted in the coming weeks, called a “balance of schedule” that will tell a more detailed story. He estimated that from 60 pages to 100 pages, and possibly more.
Filing for Chapter 7 bankruptcy involves the complete liquidation of assets and subsequent repayment of creditor claims. Tiller said there is an order to any repayments and that taxes come first.
The new filing will suspend all pending lawsuits against the company, including current lawsuits from landlords, creditors and customers.
As of March 20, Pilch's website still tells visitors it is temporarily closed, but the company remains radio silent in response to inquiries from us and countless customers.
FOX 5/KUSI attempted to contact the attorney representing Pirch in the bankruptcy case, but did not receive a response. The deadline for submitting the remaining documents for this bankruptcy application is May 3.
