ELIZABETHTOWN, Ky. (AP) — A Kentucky-based business that supplies boots, uniforms and tactical gear to law enforcement and the military has filed for federal bankruptcy protection.
U.S. Cavalry Store Inc. President James Leonard says the company has been approached by ERMC Property Management about buying its assets out of Chapter 11 bankruptcy. Leonard told The News-Enterprise (http://bit.ly/14Z7l7h ) the bankruptcy filing is part of the purchasing process.
ERMC's interest in buying the company, Leonard said, will protect the future viability of U.S. Cavalry and the jobs of its roughly 96 employees. The bankruptcy reorganization is part of the purchasing process, he added. ERMC plans to keep the company name and maintain its headquarters in Radcliff, he said.
In the filing, the Radcliff-based company estimated its assets at less than $50,000 with liabilities between $1 million and $10 million. Between 200 and 999 creditors are owed money by U.S. Cavalry.
The company lists the Radcliff retail store as well as stores at Fort Knox; Fort Campbell; Fort Stewart, Ga.; and Columbus, Ga., near Fort Benning.
U.S. Cavalry listed a $1.87 million mortgage owed to Fifth Third Bank of Cincinnati on property in Radcliff, as well as mortgages of $372,044 and $302,999. owed to Fifth Third Bank of Cincinnati for property in Shepherdsville and Stearns.
Chapter 11 bankruptcy allows a business to reorganize its affairs while being protected from its creditors. U.S. Cavalry had not filed a reorganization plan as of Monday.
Randy Acton, a local Realtor and founder of U.S. Cavalry, opened the first U.S. Cavalry retail store in 1973. Acton sold his interest in the company in 2004.
Acton said he was saddened by the news of the bankruptcy filing and described himself as one of the company's biggest cheerleaders. He said he hopes a group of investors will step up and buy the company or help turn it around because he believes it offers a needed service for the community.
"I want to see the business succeed," he said.
Leonard said the company is attempting to "fast track" the bankruptcy process and finalize the purchase so U.S. Cavalry can return to solvency and grow.
"This is our 40th year and we (fully intend) to continue business for the next 40 years," he said.
Information from: The News-Enterprise, http://www.thenewsenterprise.com