On the hook for millions with several banks and facing lawsuits in Chesterfield County, a local irrigation company has filed for Chapter 7 bankruptcy.
Osborne Irrigation entered Chapter 7 liquidation last week with $3.4 million in liabilities and $8,000 in assets.
Formerly headquartered off Courthouse Road in Chesterfield, the company owed almost $3 million to a handful of banks, several thousand dollars to the IRS and Virginia Department of Taxation, and tens of thousands in credit card debt.
Among its bank debts is $120,000 owed to Central Virginia Bank for loans and credit card debt. CVB sued Osborne Irrigation and repossessed several of the company’s vehicles, as did another credit card company.
Meadowspring Turf of Charles City, Va., also sued Osborne Irrigation for unpaid debts.
Osborne Irrigation, which installed lawn irrigation systems and was founded in 1989, also owes $2 million to City National Bank out of Missouri, $696,000 to First Capital Bank, $50,000 to the former Peoples Bank of Virginia (now part of First Community Bank), and $38,000 to Village Bank, according to its bankruptcy filing.
Its only remaining assets are $6,700 it received from the sale of its mailing list, website and phone number to a rival irrigation company, and a 1997 Chevrolet truck.
Osborne Irrigation ceased operations Dec. 29, 2011, according to a letter addressed to Osborne customers from Montgomery Irrigation President Tim Jacobs.
“Bill Osborne, President of Osborne Irrigation, has asked Montgomery Irrigation to continue to service their customers in the future,” the letter said.
Also left hanging by Osborne Irrigation are vendors such as a sod company in Mineral, Va., a turf company in Glen Allen and John Deere.
Osborne reported income of $806,000 and $773,000 in 2010 and 2011, respectively. Its bankruptcy filing listed $14,000 in income this year.
Montgomery Irrigation, based in Jessup, Md., already had an office in Richmond that opened in 2001. It also purchased a 3,600-square-foot facility last year on Old Midlothian Turnpike, according to the letter.
Michael Owen Wells of Smith and Wells is representing Osborne in the bankruptcy. He did not return calls by press time.
Jacobs, of Montgomery Irrigation, did not return calls by press time. Scott Collins, the branch manager of Montgomery Irrigation’s Richmond office, also did not return a call.