The letter was from the law firm of Shulman, Hodges & Bastian, LLP, Irvine, California, and was sent to creditors of specialty retailer Anaheim Patio & Fireside, Inc.
April 18, 2014
Re: Anaheim Patio & Fireside, Inc.
This letter constitutes an offer to compromise claims of loss or damage and to negotiate a resolution of such claims and is made for that sole purpose such that it shall not be admissible as evidence in any action or proceeding, as set forth in Federal Rule of Evidence 408.
Dear . . .
This letter is to provide you with an update on the status of Anaheim Patio & Fireside, Inc. (“Company”). As previously stated in the March 3, 2014 letter to you, the Company has been negatively impacted by the down turn in the economy in general and suffered tough financial issues with some of its locations. As a consequence, the Company has fallen behind on payments to taxing authorities, landlords and vendors/suppliers.
As previously stated, the Company has consolidated its operations to one location. Specifically, the Irvine and Brea locations have been closed and all inventory and assets moved to the Huntington Beach store.
The Company has taken a hard look at its finances and possible work-out plan business model and sadly has determined that it must pursue a liquidation strategy to maximize the recovery for all creditors. Specifically, in order to maximize the recovery for all creditors, the Company has determined it must over the next sixty days conduct a liquidation sale of the Company’s assets. The funds generated from this process will be used to pay creditors in their order of priority that creditors would normally see in a bankruptcy proceeding.
The Company has engaged the services of CMA to assist in its liquidation. CMA is a long established and well-respected third party who oversees liquidation sales of this type and often acts as a fiduciary for creditors. CMA’s analysis of value and proposed liquidation strategy is attached for your review. The sale process is set to begin this coming weekend. The funds generated from the sale of assets will be used to pay creditors in their order of priority utilizing the framework set forth in the Bankruptcy Code Section 507.
The letter goes on to request that creditors refrain from collection activity for at least the next 60 days while the Company pursues the liquidation of assets.
Major Fourth and Fifth level creditors include the following:
|State Board of Equalization
|Irvine Company Retail Properties
|Warner Center, L.P. c/o Pacific West Asset Management Corp.
|Brown Jordan Company
|Northcape Chicago Wicker
|RH Peterson Co.
The words in the document are brief and devoid of emotion, they don’t hint at the years of hard work and smart decisions required to build a solid business of three successful stores in the high-priced real estate world of southern California.
The words don’t hint at the pain and emotions that undoubtedly reside behind every single letter of that document.
Anaheim Patio & Fireside isn’t the only casualty of the downturn, but it is one of the most well-known and admired retail businesses.
Summer Classics, the premier luxury outdoor furniture manufacturer, announced the appointment of Neal Morgan to COO along with Janet Roberson to CFO of Summer Classics.
As COO Morgan will be responsible for examining corporate operations and pursuing opportunities to further develop the current business model. Morgan has held multiple positions throughout his lengthy career at Summer Classics, the most recent of which being CFO.
“Neal has been with our company since the beginning,” said William White III, president and CEO of Summer Classics. “I am completely confident that his skill set and determination will only further our success moving forward. He has proven himself an asset and an invaluable employee throughout his 25+ years, and this is a well deserved opportunity.”
Summer Classics is also pleased to welcome Janet Roberson as CFO. She will be responsible for all accounting, financial reporting and financial analysis initiatives for Summer Classics, Gabby, Parker James, Summer Properties, Summer Classics Contract and Summer Classics Properties.
Roberson brings to Summer Classics an impressive record of finance and administration achievements, having served as controller for several multi-billion dollar global manufacturing companies. In addition Roberson has extensive experience building new accounting and financial functions in start-up companies and has worked to maintain and strengthen those in mid-tier businesses.
Morgan and Roberson will both be based at the Summer Classics Corporate Headquarters near Birmingham, Alabama.
Last summer, Belgium-based Stûv fireplaces opened its official subsidiary in Montreal, right next to the location of its Northeast distributor Vincent Boudreau.
The subsidiary is managed by François Thiry, whose goal is to offer access to the brand throughout America by forming strategic partnerships with innovative and contemporary-design-minded distributors in western Canada and the western U.S.
To strengthen its presence in America, Stûv recently invested in a very experienced manufacturer of contemporary gas fireplaces; it merged with Netherlands-based TULP (www.tulp.eu).
Visit the website.