Luxury appliance brand Pirch has filed for Chapter 7 bankruptcy and shut down all six of its furniture showrooms in California. The company had initially announced ‘temporary’ closures in March due to the COVID-19 pandemic, but has now made the decision to liquidate its assets. Chapter 7 bankruptcy is a legal process that allows a company to eliminate its debts and reorganize its finances. In this case, it means that Pirch will sell off its remaining assets, including its buildings and inventory, to repay creditors. The company’s assets are reportedly worth between $10 million and $50 million, but its debts total between $100 million and $500 million, including millions owed to American Express. Pirch is also facing lawsuits from other business associates. Customers have expressed their disappointment and sadness on social media, with many praising the company’s customer service and hospitality in the past. However, some shoppers had noticed signs of financial distress in recent months. Chapter 7 bankruptcy typically marks the end of a business’s operations, as opposed to Chapter 11 bankruptcy, which allows companies to restructure their finances and continue operating. Rite Aid and Express are recent examples of companies that have filed for Chapter 11 bankruptcy in order to sell off assets and reorganize their businesses.
Luxury Appliance Retailer Pirch Declares Bankruptcy, Shuts Down All Locations
