Mastroianni Brothers Bakery files Chapter 11 bankruptcy after Shutdown

by San Antonio Attorney

Mastroianni Brothers Bakery, a commercial bakeshop in New York, has filed for Chapter 11 bankruptcy on Aug. 25 in United States Bankruptcy Court in Albany.

Court documents filed show that the company owes around $800,000 to 55 unsecured creditors.  The Italian bakery shut down in July after experiencing waning sales.  The business started operating in 1923, and had 52 employees when it closed.

When a company files for Chapter 11 bankruptcy, it usually means that it intends to restructure its business and create a repayment plan to settle debts over a certain period of time.

According to the former CEO of Mastroianni Brothers, Warren Zeiser, he was surprised about the company’s move to file for bankruptcy.  After the operations stopped, Zeiser was looking for partners to buy the business.   In the end, those efforts were futile, Zeiser said.

He said he assumed the company will not accept their proposal because of their plan to file for bankruptcy.

The bankruptcy owes $40,000 to Zeiser, as stated in the bankruptcy filing.  The biggest creditor of the company, based on the court filing, is Denver-based bakery supplier Ardent Mills LLC, which it owes around $329,000.

Earlier this year, the board of directors made a decision to sell Mastroianni Brothers Bakery.  But that arrangement failed, and it was decided to close the business instead.

Zeiser, who was appointed as CEO last year, explained that bankruptcy filing halts any attempt to buy the company.

The bakery’s assets, mostly baking equipment, are reportedly slated to be auctioned off next month.  Mastroianni Brothers Bakery did not own any real property.

Bankruptcy allows a debtor to propose a reorganization or debt repayment plan in order to keep the business or assets from being seized by creditors.  If you or your business is burdened by heavy debt, you should talk to San Antonio Attorneys to help you seek for debt relief through bankruptcy.

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