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Howard's Appliance Shuts All Southern California Stores and Files for Chapter 11

Court papers in Los Angeles list up to $17.2 million in liabilities as customers and suppliers pursue what they are owed.

Overview

  • Howard’s closed its remaining eight stores after the Thanksgiving shopping period and sought Chapter 11 protection on Dec. 10 in U.S. Bankruptcy Court in Los Angeles.
  • Roughly 100 employees were told on a Zoom call they would be laid off with about two days’ notice, and the company’s website and phone lines went offline.
  • The filing lists estimated assets between $1 million and $10 million, total property of $11.5 million, and $273,500 in unpaid state taxes.
  • Major unsecured trade claims include GE Appliances at $1.42 million, LG at $1.13 million, and Electrolux at $894,400, with additional vendor and advertising bills outstanding.
  • Recent buyers report undelivered orders dating back to October, and company representatives cite tariffs and weaker consumer spending for the collapse following an April acquisition by S5 Equity.