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

An assignment for the benefit of creditors is a voluntary alternative to formal bankruptcy proceedings that transfers all the assets from a debtor to a trust for liquidating and distributing its assets.

The paperwork, filed on May 8, says Bellacor is indebted to creditors and is unable to pay those debts as they become due and has been assigned to Lighthouse Management Group, Inc. to settle those debts.

Assignment property in the ABC includes all tangible and intangible assets including fixtures, goods, stock, inventory, equipment, furniture, furnishings, accounts receivable, general intangibles, bank deposits, cash, promissory notes, memo loans, trademarks, patents, cash value and proceeds of insurance policies, claims and demands belonging to the assignor, wherever the property may be located.

Under terms of the assignment, Lighthouse will “take possession of and administer and liquidate assignment property with reasonable dispatch, collect all claims and demands assigned and, to the extent as they may be collectible, pay and discharge all reasonable expenses, costs and disbursements in connection with the execution and administration of this assignment from the proceeds of the liquidations and collections.”

Notable brands listed among creditors include Capital Lighting, Visual Comfort, Hooker, Hudson Valley Lighting, Uttermost, Universal Furniture, Gabby, Crystorama, Bernhardt, Caracole, A.R.T. 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 firms and service providers.

While Bellacor’s website is down, Furniture Today was told that its brick-and-mortar operation, Creative Lighting, remains open and business is operating as usual.

Furniture Today has reached out to Bellacor leaders as well as a representative of Lighthouse Management Group.

See also:

• What happens when a company declares bankruptcy in 2023? M&A expert weighs in
• Outdoor décor company plans to close in April

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