Fergusons' bankrupt businesses to be sold

mercerrug

The Mercer Rugs website.

The business interests and commercial real estate holdings of bankrupt Richmond socialites Allen Mead Ferguson and his wife, Mary Rutherfoord Mercer Ferguson, will be auctioned off in the coming months.

Shortly after the Fergusons declared personal bankruptcy in March, the couple’s two businesses — George-Marshall Corp. and Mercer Rug Cleansing — filed Chapter 11. Their assets were used as collateral on loans for the family’s personal finances.

This week, after receiving substantial interest and letters of intent from prospective buyers, the attorneys handling the case asked the bankruptcy court for permission to auction off the properties.

Mercer Rug is an active business. George-Marshall is a real estate holding company. The entities own several pieces of real estate in Scott’s Addition and Oregon Hill.

They are family businesses that were once run by Mary Ferguson’s father, George Mercer. Mary Ferguson is now the president and sole stockholder of the companies.

The proceeds from the auctions will go to pay off the lien holders on the businesses. The money left over after the banks are paid off will be funneled into the Fergusons’ personal bankruptcy.

fergusonopera

Allen Mead Ferguson and Mary R. M. Ferguson

That case, which is now in Chapter 7, took a surprising turn after Allen Ferguson admitted to deceiving at least one lender by fabricating assets to secure high-dollar loans, according to a complaint filed last week by Union First Market Bank.

The Mercer Rug and George-Marshall assets include the rug business and its 23,000-square-foot headquarters at 3116 W. Moore St. and an adjacent parcel with a 6,200-square-foot building.

There is also a 17,000-square-foot warehouse on South Cherry Street and nearby land in Oregon Hill.

The real estate alone has a combined value of $1.18 million, according to city assessments.

The value of the rug business operation, including its equipments, customer accounts and inventory, has not been made public.

EVB is the largest creditor with a secured lien on all the business assets of Mercer Rug, which were used as collateral for a $1.53 million loan, according to bankruptcy records.

Union First Market Bank is the creditor on the Cherry Street property and is owed about $800,000 by the Fergusons.

One prime parcel of land in Manchester was sold to local developer Dominion Realty for $2 million. A $15 million apartment project is planned for the site.

Once approved by the court, the auctions will likely be in November or December. The companies have hired Tranzon Fox to handle the auction, according to the court records.

David Spiro and Sheila deLa Cruz, attorneys with Hirschler Fleischer, are handling the bankruptcies of the two entities. They declined to comment on the pending auctions.

mercerrug

The Mercer Rugs website.

The business interests and commercial real estate holdings of bankrupt Richmond socialites Allen Mead Ferguson and his wife, Mary Rutherfoord Mercer Ferguson, will be auctioned off in the coming months.

Shortly after the Fergusons declared personal bankruptcy in March, the couple’s two businesses — George-Marshall Corp. and Mercer Rug Cleansing — filed Chapter 11. Their assets were used as collateral on loans for the family’s personal finances.

This week, after receiving substantial interest and letters of intent from prospective buyers, the attorneys handling the case asked the bankruptcy court for permission to auction off the properties.

Mercer Rug is an active business. George-Marshall is a real estate holding company. The entities own several pieces of real estate in Scott’s Addition and Oregon Hill.

They are family businesses that were once run by Mary Ferguson’s father, George Mercer. Mary Ferguson is now the president and sole stockholder of the companies.

The proceeds from the auctions will go to pay off the lien holders on the businesses. The money left over after the banks are paid off will be funneled into the Fergusons’ personal bankruptcy.

fergusonopera

Allen Mead Ferguson and Mary R. M. Ferguson

That case, which is now in Chapter 7, took a surprising turn after Allen Ferguson admitted to deceiving at least one lender by fabricating assets to secure high-dollar loans, according to a complaint filed last week by Union First Market Bank.

The Mercer Rug and George-Marshall assets include the rug business and its 23,000-square-foot headquarters at 3116 W. Moore St. and an adjacent parcel with a 6,200-square-foot building.

There is also a 17,000-square-foot warehouse on South Cherry Street and nearby land in Oregon Hill.

The real estate alone has a combined value of $1.18 million, according to city assessments.

The value of the rug business operation, including its equipments, customer accounts and inventory, has not been made public.

EVB is the largest creditor with a secured lien on all the business assets of Mercer Rug, which were used as collateral for a $1.53 million loan, according to bankruptcy records.

Union First Market Bank is the creditor on the Cherry Street property and is owed about $800,000 by the Fergusons.

One prime parcel of land in Manchester was sold to local developer Dominion Realty for $2 million. A $15 million apartment project is planned for the site.

Once approved by the court, the auctions will likely be in November or December. The companies have hired Tranzon Fox to handle the auction, according to the court records.

David Spiro and Sheila deLa Cruz, attorneys with Hirschler Fleischer, are handling the bankruptcies of the two entities. They declined to comment on the pending auctions.

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