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SOUTH CAROLINA
BANKRUPTCY ATTORNEY

Startup enters Chapter 7 bankruptcy

A company founded in 2012 has sadly shut its doors following a period of economic hardship, according to sources local to the business. South Carolina deal hunters might be familiar with Hukkster, a startup company in the business of providing consumers with updates when favored retailers drop their prices. The company closed its doors and filed for Chapter 7 bankruptcy on Aug. 27.

The company received an early boon in its career in the form of investments from the famous Winklevoss twins, who believed in the direction the company was going. This was accompanied by considerable media attention thanks to the notoriety of the investors. The twins invested to the tune of $1.77 million into the company during its first year of operation.

Since then, however, things have become challenging. The bankruptcy paperwork listed the company's assets at only $500,000 against a debt estimated to be approximately $1.5 million just in unsecured loans borrowed between January and March of this year. This is in addition to a variety of legal fees, outstanding employee wages and vendor payments.

Chapter 7 bankruptcy is a solid move for the owners of Hukkster, who South Carolina business owners understand find themselves in a difficult financial situation. It is apparent that the company executives believed that a Chapter 11 reorganization, available to many businesses that want to remain in operation and have a plan to do so, was not a viable option. Chapter 7 bankruptcy will allow the owners to liquidate the company's remaining assets to help satisfy creditors, not to mention the possibility of debt forgiveness for other outstanding bills. This, in turn, will help the company's owners to move forward in a positive way in the open market.

Source: The Wall Street Journal, "Shuttered Discount-Alert Site Hukkster Enters Chapter 7", Sara Randazzo, Aug. 27, 2014

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