Bellacor Assigned to Creditors: What Does It Mean?

ST. PAUL, Minn. — Documents filed in Hennepin County (Minn.) District Court show that online retailer Bellacor made an assignment for the benefit of creditors.

An assignment for the benefit of creditors is a voluntary alternative to formal bankruptcy proceedings, which involves transferring all of a debtor’s assets into a trust for the purpose of liquidation and distribution of its assets.

Documents filed on May 8 show that Bellacor is indebted to creditors and is unable to repay those debts on time, and has therefore been assigned to Lighthouse Management Group, Inc. to settle these debts.

Assignment of property in ABC includes all tangible and intangible assets, including equipment, merchandise, inventory, inventory, equipment, furniture, furnishings, accounts receivable, general intangible assets, bank deposits, cash, bills of exchange, memo loans, trademarks, patents, the monetary value and proceeds of insurance policies, claims and demands belonging to the assignor, regardless of where the property is located.

Under the terms of the assignment, Lighthouse will “take possession of, administer and liquidate the property subject to the assignment within a reasonable time, collect all assigned claims and demands and, to the extent they are recoverable, pay and defray all reasonable expenses, costs and disbursements of the foregoing.” in connection with the execution and administration of this assignment from the proceeds of liquidation and recovery.”

Notable brands listed among creditors include Capital Lighting, Visual Comfort, Hooker, Hudson Valley Lighting, Uttermost, Universal Furniture, Gabby, Crystorama, Bernhardt, Caracole, ART Furniture, Currey & Company, Regina Andrew Design, Lexington Home Brands, Progress Lighting, Surya , Mohawk, Magnussen Home Furniture, Legacy Classic, Howard Elliott and many others. Other creditors include consumers, financial companies and service providers.

Although Bellacor’s website is unavailable, Furniture Today was told that its brick-and-mortar location, Creative Lighting, remains open and business is operating as normal.

Furniture Today reached out to Bellacor leaders, as well as a representative from Lighthouse Management Group.

See also: