Here is the short version for those of you looking for the "meat" of the story-
- We filed for chapter 11 bankruptcy protection on July 25th of 2008
- We presented a plan to pay back all of our debts which was initially supported by our vendors
- We worked long and hard over the last year to turn the business around and get through this prosperously, but in the end our creditors and the bankruptcy court felt that we would not be able to repay the debt and our bankruptcy was dismissed
- We are working on new plans to keep or re-open at least one of our stores and continue to serve the community
And the background-
After many successful years in our Sparks location we decided to strike out and go big in Reno. We started planning and scouting for our new location in the spring of 2005. We put together a great facility that opened on May 1st of 2007- Butcher Boy Prime.
The new location was very well received and business was better than we had hoped when we started. Unfortunately our sales flattened and the strain of the new store caught up to us. At the time, we felt that a chapter 11 bankruptcy was the best solution as it would allow us to operate and pay back all of our creditors.
After the news spread that we had filed bankruptcy, our sales were severely impacted since a lot of folks assumed that we had closed. Unfortunately the media released part of the story, simply saying that we had filed bankruptcy (happened to be the same day that Mervyn's closed, that could not have helped....). The lost revenue seriously changed our plans for reorganization.
We made many changes to the business to deal with the lost revenue and debt, managing to get the business heading in the right direction by the end of the year. We proposed our reorganization plan to the court earlier this year and a date was set for plan confirmation before the holidays.
During those few months our sales slowly grew and things were looking better, we felt confident that our plan would be successful. As we neared the confirmation date our vendors and banks decided that they could not see us completing the plan and repaying the debts as we had proposed, and therefore asked for a dismissal of the bankruptcy protection.
After the dismissal, the bank decided to act on their right to recover the assets of the business. This basically gives us two options-
- Work with the bank to buy back equipment, inventory and real estate to re-open
- Close the doors and say goodbye
On a personal note- if you happen to know anyone that works for Butcher Boy, give them a pat on the back because they have been through a lot of tough challenges this past year and kept smiling. Big thanks to all!!!
For now we need to clear out our inventory so we are holding a sale on everything in the store- 50% off absolutely EVERYTHING starting on Friday the 27th. Time to stock up the freezers!!!
Keep an eye here for the complete story straight from us. Hope to see you soon!
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