Money issues have deflated a Chicago balloon distributor, sending the business to file for bankruptcy . The 100-year-old balloon distributor M.K. Brody & Co. consistently turns a profit, but financial pressure from different areas took the air out of the finances.
Property taxes for the company’s headquarters located in the Fulton Market rose 74% in 2011. The warehouse holds between five to 10 million balloons at any given time. Unexpected health-care costs for 11 full-time employees also put pressure on the finances. In addition, a Detroit competitor insisted Brody pay for royalties once paid from a company that Brody recently bought out.
Brody filed for Chapter 11 protection, utilizing a legal remedy designed to allow reorganization without too much outside pressure. Documents filed with the U.S. Bankruptcy Court in Chicago list the company’s debts between $1 million and $10 million. Its assets are worth less than $1 million.
The company, doing business as Brody’s 800-4-Balloons, distributes balloons to retailers who purchase stock in latex and foil styles.
Owner Lee Kaufman pointed out that most balloon manufacturers are located in the U.S. Overseas competitors haven’t been able to compete. “They have a hard time in China making a balloon that can float,” he said.
For many, bankruptcy is something that will never happen for a number of reasons. However, for those who are struggling with debt, bankruptcy is an excellent tool for rebuilding a life, literally. There is no more hassling with creditors, debt collectors and non-stop phone calls. Bankruptcy offers what is known as a fresh start, allowing all filers to rebuild their credit and lives.
Benjamin Brand Services – Chicago bankruptcy attorney