Danny Vegh’s, the home entertainment leaders specializing in pool tables, arcade games, and the like has filed for Chapter 11 bankruptcy in the first weeks of July 2018. The company’s sole location in Mayfield Heights, OH will remain open for the foreseeable future. The home entertainment company has struggled financially over the previous few years and has gone from having five stores down to just one.
Danny Vegh’s Ohio Bankruptcy
In its petition for Chapter 11 bankruptcy filed with US Bankruptcy Court in the Northern District of Ohio (Cleveland), the company listed assets in the $100,001 to $500,000 with liabilities in the $1,000,001 to $10 million range.
The company’s dramatic Mayfield Heights bankruptcy seems to derive from a judgment obtained from the company’s landlord who operates the Westlake shipping center in which Danny Vegh’s previously had a location. Parties involved in the bankruptcy filing claim that funds spent on litigation caused the organization to default on its lease. The judgment, amounting to $306,000, is the third largest creditor listed in the bankruptcy case with other suppliers such as Woodard Furniture Company owed over $553,000 and Legacy Billiards, owed over $37,000.
Chapter 11 Restructuring
Chapter 11 bankruptcy, as many individuals discover every day, is a way for businesses to renegotiate debt that could cripple the business or close it down for good. This is the reason why it is common for a company to have a monetary judgment declared against it and a Chapter 11 bankruptcy following in short order. Danny Vegh’s operating company has stated that they intend to use the Chapter 11 reorganization process to keep the company alive and maintain the brand.