American Blinds Ceases Operations And Stiffs Its Suppliers - Buyer Beware / American Blinds Ceases Operations and Stiffs its Suppliers - Buyer Beware
American Blinds ceases operation and winds down business. Isn't paying its suppliers. Is it fraud if they took consumer orders - charging consumer credit cards - knowing that they were not going to ship orders? Being one of their suppliers we were stiffed for over $7, 000 - We are one of their suppliers - they continued to send us orders to ship even though they knew they were on credit hold and we were not going to ship any new orders until we got paid. This went on for more than 5 weeks. It is my understanding that they are/were owned by Contrarian Capital http://www.contrariancapital.com/ - a very successful investment group that is worth over $3 billion - yes - that is BILLION DOLLARS - the secured lender was also the same Contrarian Capital. Below is an e-mail from the President of American Blinds to folks like me - their vendors - BUYER BEWARE.
From: Joel Levine
To: Joel Levine
Cc: Bill Tufts; Nick Darin
Sent: Thursday, April 08, 2010 9:51 AM
Subject: Wind Down Of American Blinds and Wallpaper Factory, Inc
April 8, 2010
Re: Wind Down of American Blind & Wallpaper Factory, Inc.
This letter is to inform you that effective April 7, 2010 American Blind & Wallpaper Factory (“ABWF”) ceased doing business. As you may be aware, ABWF has been experiencing financial difficulties for some time due to a reduction in consumer orders corresponding to the current economic conditions. ABWF’s secured lender, which has a security interest in all of ABWF’s assets, determined that it would no longer extend credit, making continued operations impossible. ABWF’s debt to the secured lender significantly exceeds the value of ABWF’s assets. Under these circumstances, ABWF and the secured lender decided that the best course of action was for ABWF to turn over its assets to the secured lender. ABWF understands that the secured lender has disposed of the assets on April 7, 2010, in a sale to a strategic buyer for less than the secured lender was owed.
Because ABWF’s secured debt is so much greater than the value of its assets, ABWF does not anticipate that there will be any funds available to distribute to unsecured creditors, including your company. Furthermore, ABWF will rapidly wind down its operations. Because, ABWF has no assets, any collection efforts will be a waste of resources.
ABWF regrets to inform you of these events. Under the circumstances, ABWF has no realistic choice but to cease operations.
If you require additional information or want to discuss the situation please feel free to contact me by phone or email at [protected] (direct), [protected] (cell), [protected]@americanblinds.com, or [protected]@verizon.net .
I personally thank all of our business partners for the partnerships and working relationships we have developed over the years.
I believe that the strategic buyer will be contacting you to discuss ongoing business relationships and future opportunities including the fulfilling and payment for open orders not yet shipped.