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Chapter 7 Bankruptcy for 40-Year-Old Appliance Shop

Posted on July 12th, 2011

Zayas Appliance, a Brooklyn institution for almost 40 years, has closed its doors following a Chapter 7 bankruptcy filing by its corporate parent, E-D & G Inc. According to an article on www.crainsnewyork.com by Jermaine Taylor, Zayas “is the latest casualty in a string of closures by local merchants, who have struggled as a result of the flagging economy”.

In the bankruptcy filing, Zayas showed approximately $110,000 in assets and $150,000 in liabilities when it closed. Its major creditors include GE Capital Solutions, shipping company Lehrhoff ABL and AK Distributors USA Inc.

Gina Zayas took over the shop from her father in 2001. In an interview with The New York Times two years ago she related how the poor economy was negatively affecting the business’s bottom line. “’A lot of regulars, we just haven’t seen. The appliances are usually the biggest sellers, but people are cutting back.’”

One owner of a nearby business was quoted as saying the rents in the area known as “Little Poland” are too high and that rents were significantly raised. He added that “A lot of stores are empty right now and no new business is coming here.”

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Tags: Appliance, Appliance Shop
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