Strasburg-Jarvis files Chapter 11 bankruptcy
A Lenexa company that makes children’s and dolls’ clothing and accessories has declared Chapter 11 bankruptcy with debts of $7.4 million owed to 100 to 199 creditors.
Strasburg-Jarvis Inc., which does business as Strasburg Children, declared assets of $9.18 million. It owes $5.42 million to secured creditors and $1.96 million to unsecured creditors with nonpriority claims.
The company filed for Chapter 11 protection on Wednesday in U.S. Bankruptcy Court for the District of Kansas.
The company is mostly owned by 11 local investors, including President Terry Jarvis of Leawood, whose trust owns 34.2 percent of the company, according to court documents. Many of the largest unsecured creditors are shareholders who loaned money to the company quick payday loan.
The company’s revenue has slipped in recent years. Strasburg-Jarvis reported revenue of $27.3 million in 2008, down 7 percent from $29.3 million in 2007. Through the beginning of March, revenue was $3.55 million.
The Strasburg-Jarvis board decided Feb. 26 that the company should file for Chapter 11 bankruptcy, based on talk about the company’s financial condition and its inability to pay its debts when they came due.
The company’s attorney couldn’t immediately be reached for comment.