Luxury appliance retailer Pirch files for bankruptcy
Pirch, a well-known luxury appliance retailer, has officially declared bankruptcy after filing for Chapter 7 of the United States Bankruptcy Law. The company, which is struggling to recover from the economic crisis, reportedly has between 100 and 500 million dollars in debts.
According to Fox News, Pirch initially presented preliminary documentation before the Court, revealing a dire financial situation. Bankruptcy attorney Ahren Tiller stated, “It is rare to see an emergency Chapter 7 for a company. Based on the five pages of the documents, it appears that creditors are going to be paid much less than what they are owed.”
The closure of Pirch’s stores in California, particularly in San Diego, Orange County, and Los Angeles, has left both customers and employees blindsided. Workers say all locations were closed without notice, and attempts to contact the attorney representing Pirch in the bankruptcy have gone unanswered. The remaining documentation of the bankruptcy filing is due on May 3.
Pirch’s website currently states that the company is ceasing operations, but there has been no response to inquiries from customers or the media. A Chapter 7 bankruptcy filing involves the complete liquidation of assets and payment of creditor claims.
The store chain’s social media accounts on Facebook and Instagram are now deactivated, and The Los Angeles Times reported that Pirch is facing over a dozen civil lawsuits from owners, clients, and merchants. The company sent notices of dismissal to employees at four warehouses, resulting in layoffs of 23 employees in one location and 17 in two others.
Despite the challenges faced by Pirch, the company has not issued a public statement on the situation. Customers and employees remain in the dark about the future of the luxury appliance retailer as it navigates through the bankruptcy process.