Moosehead Files Chapter 11, No Auction for Now

January 21, 2010  by in UnCategorized   

By Home Furnishings Business in Bankruptcy on January 22, 2010 The owners of Moosehead Furniture Co. staved off an auction Thursday when they filed Chapter 11 bankruptcy proceedings.

The auction was stopped just before it was to begin, according to a report in the Bangor Daily News.

According to the newspaper, Steve Keenan of Keenan Auction Co. said the Moosehead owners will now file a reorganization plan with the U.S. Bankruptcy Court. If that plan fails, Keenan said another auction could be scheduled later.

Last month, Machias Savings Bank, Moosehead's primary lender placed the property and equipment up for auction after the company closed its doors because it didn't have needed working capital.