PC Rebuilders & Recyclers, LLC (PCRR), an Illinois-based reuse and recycling company, has filed for bankruptcy and has shut its doors. The company filed for Chapter 7 earlier this month, indicting its plans to sell of its assets and pay creditors. The more well-known Chapter 11 bankruptcy means a company is looking to reorganize, create a debt repayment plan, and stay in business. This is not in the cards for PCRR.
According to a filing with the U.S. Bankruptcy Court for the Northern District of Illinois, the company has less than $50,000 in assets and its liabilities total is between $1.0 million and $10.0 million.
The company has 70 creditors, but does not detail the amount owed in court filings. Creditors include e-scrap companies ARCOA Group, Cohen Electronics Recycling, and ERI. Other creditors include United Parcel Service, Inc. (NYSE:UPS), Anthem (NYSE:WLP) , the Internal Revenue Service, and Microsoft Corporation (NASDAQ:MSFT). A meeting of creditors is scheduled for July 13 in Chicago.
Because PCRR voluntarily filed for Chapter 7 bankruptcy, it plans to liquidate assets to pay creditors rather than craft a debt-repayment plan. No money will remain to pay unsecured loans.
PCCR’s web site is down. In addition, call to the company’s offices was met with a recorded message saying the business permanently closed its doors on June 9 and that the company is “sorry for any inconvenience this may cause you.”
PCRR is a Chicago-based recycling and refurbishment outlet that was founded 17 years ago. The company, as name suggests, specialized in device repair. It also previously put on the annual Electronics Reuse Conference.
The writing may have been on the wall for PCRR. Back in February the company was sued by OmniSource Electronics Recycling. OmniSource claimed it sold and shipped thousands of used electronics to PCRR to be recycled and refurnished, but it wasn’t paid the $190,000 it was owed. OmiSource is listed as a creditor in PCRRs Chapter 7 filings.
“I am optimistic that we will figure out a mutually agreeable solution,” said Willie Cade, PCRR founder. “Certainly that’s my intent.”
Shortly thereafter, PCCR changed its tune and said the electronics it received were of poor quality.
In a court filing, a PCRR attorney said, “The computers and electronics, especially the grade, quality and cosmetics and appearance of the computers and electronics, were deficient and defective and not what OER promised and was required to provide.”
“Voluntary Petition for Non-Individuals Filing for Bankruptcy,” Bankruptcy Court for the Northern District of Illinois, June 11, 2017.
“Deal gone sour leads to $190,000 lawsuit,” E-Scrap News, February 9, 2017.
“Defendant’s Answer and Defenses To Plaintiff’s Second Amended Complaint,” United State’s District Court Northern District of Indiana, March 20, 2017.