The Longaberger Company, an American manufacturer and distributor of handmade baskets, has decided to to go into Chapter 7 bankruptcy instead of the Chapter 11 it previously filed. They will be liquidating their assets instead of trying to restructure and continue operating.
Loganberger and its parent company JRJR initially filed for Chapter 11 bankruptcy in July with the intention of remaining in business and reorganizing to pay the debtors. Chapter 7 “provides liquidation, the sale of debtor’s nonexempt property and the distribution of the proceeds to creditors.” It is unlikely Longaburger will continue as a company after this.
In 1997 The Longaberger company headquarters were in a building the shape of a giant market basket in Newark just east of Columbus Ohio. The company stopped paying property taxes on the iconic building in 2014. And in 2016 the remaining employees were moved to nearby Frazeysburg Ohio.
In May the company sent out emails to sales consultants that the company had ceased operations and was without money to run the business. Longaberger stopped running the company before filing for bankruptcy and neglected to pay its employees or taxes.
Employee Wages Still Due
The Ohio Department of Commerce reports Longaberger owes over $12,000 in wages and damages to three remaining employees. And according to the Ohio attorney general’s office Longaberger owes $1,361,915 in unpaid taxes.
In 2000 at the top of their business, Longaberger was a billion dollar company with 500 employees working at headquarters in Newark and over 70,000 sales consultants operating home shows. There were as few as 75 full time employees in April 2016.