Mitchell Gold + Bob Williams has been ordered into liquidation by a federal Bankruptcy Court Judge in Delaware. The company now has two weeks to turn over records of its assets and liabilities to the interim bankruptcy trustee, and a month to submit a full report.
The Taylorsville based furniture manufacturer closed on August 27th leaving over 500 employees without a job in Alexander and Iredell Counties.
The company filed for Chapter 11 bankruptcy on September 6th.
Judge Laurie Silverstein ordered the conversion, saying it is “in the best interests of the debtors and their respective entities, creditors and all parties in interest.” The company attempted to secure millions of dollars in funding to continue operations and fulfill customer orders.
Former owner Mitchell Gold said a few days after the closing the PNC Financial Services Group’s refusal to provide the funding was the reason the company closed.
PNC contends they are owed at least $9.5 million.
Ahead of the closure, the private equity group The Stephens Group said it had invested an additional $20 million into the company to help it continue operations. That cash infusion didn’t help.