On March 24, 2022, Genova Burns attorneys filed Chapter 11 bankruptcy for Elite Home Products LLC, a New Jersey corporation that supplied finished textile products to retailers for over twenty years.
Elite Home Products provided mainly sheet sets, duvet sets, blankets, and other bedding and bathroom textile supplies to online shops, brick and mortar stores, and consumers through direct shipments for other retailers. The company was profitable for nearly every year since its founding and usually had employment numbers in the double digits, with as many as fifty employees at once.
Beginning in 2020, Elite Home Products faced increased prices for materials even before COVID-19 spread across the world.
Prices for goods and shipping only increased when the pandemic finally spread, and Elite Home Products, like many other businesses, was unable to adjust to pervasive supply chain and cost issues. Recognizing that these issues will continue and hinder Elite Home Product’s ability to earn a profit, the company filed a Chapter 11 bankruptcy plan that will maximize the return for creditors of all classes.
With the support of Genova Burns Partner Daniel M. Stolz, Esq. and Counsel Donald W. Clarke, Esq., Scott Rever, Esq. and Greg Kinoian, Esq., Elite Home Products will, among other things, reduce ongoing costs, liquidate inventory, and seek a buyer for their assets and business.