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TheaterXtreme Files for Chapter 7 Bankruptcy
The home theater installation store franchisor had suspended operations on Dec. 2 because it had "an insufficient amount of cash on hand."
TheaterXtreme Entertainment Group, Inc. has filed for Chapter 7 bankruptcy relief, according to an SEC filing.
The franchisor of home theater installation stores had suspended its operations and "suspended the employment" of all executive officers and employees on Dec. 2.
However, TheaterXtreme's 11 franchise stores appear to be unaffected by the suspension of operations. CE Pro called several of those stores, all of which were open for business.
TheaterXtreme had announced in November that it raised $795,000 in new investment capital its suspension of operations, but the Dec. 2 suspension of operations was “due to having an insufficient amount of cash on hand,” according to a previous SEC filing.
That filing added that if the company can’t raise the necessary cash, it will file for bankruptcy, which it did today under Chapter 7 guidelines.
A company under Chapter 7 proceedings, according to the Associated Press, is able to continue to operate under the direction of a court trustee until the matter is settled. If the company can resolve its problems and settle with creditors in the interim, it may not have to be liquidated.
The franchisor of home theater installation stores had suspended its operations and "suspended the employment" of all executive officers and employees on Dec. 2.
However, TheaterXtreme's 11 franchise stores appear to be unaffected by the suspension of operations. CE Pro called several of those stores, all of which were open for business.
TheaterXtreme had announced in November that it raised $795,000 in new investment capital its suspension of operations, but the Dec. 2 suspension of operations was “due to having an insufficient amount of cash on hand,” according to a previous SEC filing.
That filing added that if the company can’t raise the necessary cash, it will file for bankruptcy, which it did today under Chapter 7 guidelines.
A company under Chapter 7 proceedings, according to the Associated Press, is able to continue to operate under the direction of a court trustee until the matter is settled. If the company can resolve its problems and settle with creditors in the interim, it may not have to be liquidated.
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About the Author
Tom LeBlanc, Senior Writer/Technology Editor, CE Pro
Tom has been covering consumer electronics for six years. Before that, he wrote for the sports department of the Boston Herald. Migrating to magazines, he was a staff editor for a golf publication and an outdoor sports publication. Now, as senior writer/technology editor of CE Pro magazine since 2003, he dabbles in all departments and offers expertise in marketing. Follow him on Twitter @leblanctom.
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