A local cabinetmaker with stores in Short Pump and Midlothian has filed for bankruptcy.
Old River Cabinets Inc., which operated out of a production facility in Amelia County and had four retail locations in Richmond and Northern Virginia, filed Monday for Chapter 7 bankruptcy liquidation.
The 10-year-old company had been searching for a buyer or investor in the days leading up to its filing, according to Kevin Funk, an attorney with DurretteCrump who is representing Old River.The company ceased operations and its assets will be liquidated by a court appointed trustee. Its store at Short Pump was closed on Thursday. The phones in its two Northern Virginia stores are disconnected. Calls to the company headquarters go unanswered.
“We identified some potential buyers,” Funk said. “When they didn’t work out, there was no other option.”
The company lists more than 100 creditors that are owed between $1 million and $10 million.
The lenders among its creditors include Wells Fargo, Central Virginia Bank and Peoples Bank of Virginia, which was acquired by First Community Bank.
Old River also owes money to the Amelia County Treasurer, Henrico County, the City of Richmond, several local law firms, including Christian Barton and Creedle, Jones and Alga, and the company’s founder and former chief executive, Victor Morrisette.
Morrisette founded the company in 2002. He remains a shareholder in the company but hasn’t been involved in day-to-day operations for some time, Funk said.
Jon Beckner was brought on as a consultant in late 2011 and was interim chief executive. The company in February began to publicize that it was under new management with Beckner at the helm. Beckner did not return a call by press time.
Old River was profitable throughout the first part of 2012, Funk said.
“They had survived the worst of the housing bubble,” he said. “But they had a stronger-than-expected drop-off in sales in the second half of the year and just weren’t able to weather that,” Funk said.
Old River had operated out of a 167,000-square-foot production plant in Amelia Court House, Va., about 40 miles west of the city. The 15-acre property is not an asset of the bankruptcy and was previously owned by another company tied to Morrisette.
In addition to retail locations in Fairfax and Sterling, Old River had a store in Short Pump in the Trader Joe’s shopping center just west of West Broad Village and another on Alverser Drive, just off Midlothian Turnpike.
A Times-Dispatch report from 2007 stated that Morrisette spent $20 million to get the company up and running.
Its customers were high-end homebuilders and consumers.
The bankruptcy trustee will determine the best course of liquidation. Funk said a buyer could purchase the company’s assets as a whole out of bankruptcy.
“You could envision various scenarios where somebody would want to pick it up and run with it,” Funk said.