A well-known commercial advertising agency has filed for bankruptcy, according to local business news. Business owners in Michigan are no strangers to the financial hardships brought on by the 2008 recession, which is being pointed to as a major factor in the decision of Meridian-Chiles to shut its doors. The Chapter 7 filing took place on May 21, and the case is now being overseen by a Bankruptcy Court.
Founded in 1988 and amalgamated in 2012, Meridian-Chiles was once a prosperous advertising agency with many media links to its name. Now those media affiliates are asking to be paid back for their investments, to the tune of $5.1 million in debt, versus only $676,000 in assets. Many of the creditors are unsecured, the largest of which was a $2.5 million draw loan from Central Bank & Trust Co.
The company's leadership has cited the financial unrest brought about back in 2008 at the onset of the recession, which the company never fully recovered from. The company's assets will be liquidated to help satisfy the 130 creditors waiting to be paid, including one of the board members himself. The company was officially shuttered on May 20.
Companies here in Michigan and across the country are still feeling the effects of the recession, and an economy which is only now beginning to return to some semblance of normalcy. For many businesses, Chapter 7 bankruptcy offers the ability to liquidate company assets to protect the personal assets of shareholders and owners. This, in turn, allows them to keep their own financial foundations in place so as to return to the market debt-free and financially stronger than before.
Source: bizlex.com, "Meridian-Chiles Declares Bankruptcy, Closes", Susan Baniak, May 21, 2014