APEX, N.C. - Citing a $2.1 million debt, North Carolina-based Forbes Custom Cabinets filed for Chapter 7 bankruptcy protection. The action allows the company to carry on normal business operations while negotiating payment terms with its creditors.
Founded in 1985, Forbes Custom Cabinets, which installed cabinets for health care offices, educational space and government offices, listed $666,325 in assets and $2.1 million in debt in its bankruptcy filing, according to court filings reviewed by Woodworking Network.
Forbes Custom Cabinets was purchased in 2009 by two investors, Ed Halberg and Flint Davis.
Receivables at the time of the filing were $337,178. Equipment on the floor was valued at $165,950, the most valuable being a Biesse Edgebander. Two leased items include a Weeke CNC and a Holzma beam saw.
There are more than 65 creditors in the bankruptcy filing, including A&M Hardware, Ashcroft Saws, Atlantic Countertops Inc., Carolina Custom Surfaces, and Endeavor Fabrication. The largest creditor is Bank of North Carolina, owed a net of $568,04. Large unsecured creditors include James F. Davis, owed $221,408 and Ed Hallberg, owed $150,000.
A creditors meeting was scheduled for mid-September, according to court documents, but no additional information was provided. Creditors have until November to file claims.
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