• 22
  • July
    2011

According to documents filed in U.S. Bankruptcy Court for the Middle District of Tennessee, high end- art and furniture retailer Gallery at Belle Meade filed for Chapter 7 bankruptcy protection on Wednesday. Colonial Investments Inc, the actual operating entity, is wholly owned by Tim Gregory.

In its filing the retailer listed that it has over $2.7 million in liabilities, and around $380,000 in assets. The bankruptcy filing notes that sales have steadily been declining in the last couple years. In 2009, the store sold $1.3 million, in 2010, they sold $890.000, and so far in 2011 the company has sold $325,000.

In terms of creditors, the filing lists a number of individuals who hold claims anywhere from several hundred dollars to thousands of dollars. The filings also lists among its largest creditors Italian furniture company Rho Mobili D-Epoca, to whom the retailer owes $700,000, Commerce Capital, who is owned $ 620,000, and Ackerman-Mallory, who is owed $150,000. The filing also says Gallery at Belle Meade owes the IRS $48,000. In addition to the above, there are also six collection-related lawsuits against the retailer which are still pending.

In Chapter 7 bankruptcy, often called "fresh start" bankruptcy, a debtor is allowed to free themselves of most or all of their debts and start over. Most debtors who file for a Chapter 7 bankruptcy can only qualify if they pass the "means test," which sets an objective standard as to who can go through the process. Debtors whose debts came primarily from operating a business, however, do not have to pass the means test to qualify for Chapter 7 bankruptcy.

Source: Nashville Business Journal, "Green Hills luxury retailer seeks bankruptcy protection," Annie Johnson, 20 July 2011.