RAPAPORT... Retailer David Webb filed for Chapter 11 protection, citing very poor economic conditions in the U.S. According to documents filed with bankruptcy court, David Webb experienced higher operating costs and weak sales, resulting in substantial cash-flow difficulties. Gross sales for the fiscal year ending June 30, 2008, were $13.2 million; however, total sales are not expected to reach $5 million as this fiscal year comes to a close on June 30, 2009.
David Webb listed assets of approximately $10.3 million, including inventory of $7 million. Liabilities stand at approximately $6.9 million, which includes $2.9 million owed to First Capital, loans due shareholders totaling $1.1 million and accounts payable of $1.3 million. The company estimated its operating expenses for the next 30 days at $377,927, and it expects sales of approximately $400,000 in the same period.
David Webb listed the following as unsecured creditors:
Frank Mastoloni & Sons - $333,700
Dov Schwartz - $165,553
J. Birnbach - $30,000
P.H. Gems International - $19,325
Marco Polo Precious Metals - $18,090
A. Heller Metals - $4,992
Gemdek Corporation - (amount not reported)