3 creditors seek to force LuxeYard into Ch. 7
Furniture Today Staff -- Furniture Today, January 14, 2013
LOS ANGELES - Three creditors of online retailer LuxeYard have filed a petition in U.S. Bankruptcy Court here to force the company into Chapter 7 liquidation.
The creditors, including Thomasville, N.C.-based upholstery resource Ison Furniture, say they are owed more than $66,000 by LuxeYard.
They have asked U.S. Bankruptcy Judge Barry Russell to approve an involuntary Chapter 7 proceeding, during which a trustee would be appointed to oversee the sale of LuxeYard's assets in order to pay creditors.
Other petitioning creditors are Direct Resource Ltd., a New Delhi, India-based resource for furniture, accessories and apparel, and Fetch Recruiting, a Torrance, Calif.-based search firm that places people in technology jobs.
According to court documents, Ison is owed $17,444, Direct Resources is owed $15,776, and Fetch Recruiting is owed $33,000.
In a statement released to Furniture/Today, LuxeYard said it intends to contest the bankruptcy petition.
"We anticipate that this action will dismissed since it was indisputably filed in bad faith and the amounts allegedly owed are in dispute," the statement said.