Kane Co. Files Chapter 7 Bankruptcy

by San Antonio Attorney

The Kane Co., an Elkridge-based moving company, filed for Chapter 7 bankruptcy after its CEO said problematic finances would drive the business to shut down, causing about 900 people to lose their jobs.

Chapter 7 involves winding down the company, liquidating assets in order to repay creditors.

The company has around $8.8 million in debt to over 700 entities, with unsecured claims of almost $6.5 million.  The company owes $233,400 to employees.

The Kane Co. also faces a number of pending complaints over contracts.

The company’s income has gradually decreased starting in 2014, when the company generated around $58.2 million, based on the bankruptcy documents filed.  That dropped to around $49 million in 2015 and $38.8 million in 2016.

CEO John M.  Kane attributes the business’s problems with businesses utilizing less office space needed to transport less equipment.  According to him, the last straw happened when new facilities the firm was supposed to move to weren’t settled as anticipated in October 2015, pressing Kane to make around $2 million in unforeseen investments.

Weleski Transfer, a moving firm based in Pennsylvania, filed a lawsuit in a Pittsburgh court in December to recover almost $100,000 it says Kane should pay for their services.  Weleski has been attempting to get the full payment for months.

The Kane Co. states around $15.8 million in assets.  Creditors are slated to meet on January 23 and required to provide proof of claim by March 27.

After the company’s troubles came out, a couple of moving companies — Suddath and JK Moving Services — have claimed they were interested on certain parts of the business.

Kane expressed that he hopes the company’s archives and shredding services are going to be sold, which may yield around $1.7 million, he said.

Other companies owned by his siblings, such as Kane Real Estate, Kane Construction and International Limousine Service are excluded from the closure of Kane Co.

The Kane Co. companies that are included in the bankruptcy are Office Shredders, Office Movers, Kane 3PL, Kane Office Archives, and Circle K-1 Realty.

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