ArchBrook Laguna Holdings Files for Chapter 11 Bankruptcy Protection in New York


ArchBrook Laguna Holdings LLC and several affiliated companies - ArchBrook Laguna New York, LLC; ArchBrook Laguna, LLC; ArchBrook Laguna West, LLC; Expert Warehouse, LLC; Lehrhoff ABL, LLC; and Chimerica Global Logistics, LLC - voluntarily filed for chapter 11 bankruptcy protection in New York City. The companies plan to use the bankruptcy filings to sell substantially all of their assets pursuant to a bankruptcy auction, which they have asked the bankruptcy court to schedule for August 8, 2011. In a press release announcing the filings, the Chief Financial Officer of ArchBrook Laguna Holdings provided the following explanation for the bankruptcies:

"After careful consideration of all available alternatives, we determined filing chapter 11 was a necessary and prudent step and in the best interests of our creditors. Furthermore, all signs indicate that an open sale process is the most value-maximizing alternative in these circumstances, and we are hopeful that the process will result in continued operation of the underlying business under new ownership. Our operations will not be impacted during chapter 11 and our customers will continue to receive the highest quality service that they have come to expect from the Company."

The companies, which are headquartered in Carlstadt, New Jersey, "operate as a procurement and distribution intermediary between production companies and end retailers using state-of-the-art logistical services." The list of products carried by the debtors (referred to as a "line card") includes a wide variety of computers, consumer electronics, and white goods (major appliances) from manufacturers such as Acer, Dell, Garmin, LG, Monster, Panasonic, Pioneer, Samsung, Sharp, Tom Tom, Toshiba, Bissell, Black & Decker, Brother, Cuisinart, DeLonghi, Emeril, Fuego, Haan, Hamilton Beach/Proctor Silex, Hoover, and Norelco. The largest category of products for the companies is computers, which is expected to account for approximately 44% of 2011 sales. In court filings, the companies reported over $800 million in revenues in 2010.

The ArchBrook companies also sell to a wide variety of retailers, including national retailers (such as Wal-Mart, Best Buy and Costco), e-commerce retailers (such as and, broadcast/home shopping retailers (such as HSN and QVC), and rent-to-own chains (such as Rent-A-Center and Ace Furniture). Court filings report that sales are more diversified across these retail categories, with no category constituting more than 20% of revenues. The companies employ 267 people and reported consolidated assets of $246 million against consolidated liabilities of $176 million (both as of March 31, 2011).

A copy of ArchBrook Laguna Holdings LLC's chapter 11 voluntary petition is embedded on our blog:

To access copies of all major court filings from these bankruptcy cases, please visit:

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Randall Reese, Restructuring Concepts LLC | Attorney Advertising

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