Daily News: August 9, 2012

Vann’s Files for Chapter 11; Owes GE Comm’l Distribution Finance

Vann’s Inc. has filed for Chapter 11 protection in the U.S. Bankruptcy Court in Montana listing $17.6 million in assets and $14.4 million in debt, according to a Wall Street Journal article.

The company’s filing comes after poor sales and efforts to expand into new businesses, both unsuccessful.

The electronics retailer, headquartered in Montana, owes GE Commercial Distribution Finance about $8.5 million. GE refused to increase its line of credit prior to the bankruptcy filing. Vann’s also owes $4 million to First Interstate Bank, which has agreed to provide DIP financing to the company, the WSJ article said.

The company hopes to sells its business and inventory while in Chapter 11.

To read the Wall Street Journal article in its entirety, click here.