Beaulieu Group LLC has filed for Chapter 11 bankruptcy in federal court in Rome. The 170-page initial document lists corporate assets of between $100 million and $500 million, and the same box is checked for liabilities as well. Among those signing the bankruptcy petition is Carl M. Bouckaert, who helped found the company in 1978.
A review of the initial document — dated July 16 — shows its 30 largest unsecured creditors, with several owed roughly $4 million each and then a list descending in amounts owed. Aladdin Manufacturing in Calhoun, for example is owed $3.96 million. A handful of smaller companies in Northwest Georgia also are listed among the extended list of creditors.
Documents show the intent of the filing: “Te Debtors are optimistic that Chapter 11 will allow them time to restructure their business affairs and pursue one or more strategies for successful emergence from Chapter 11.”
Beaulieu has eight manufacturing facilities in Georgia and one in Alabama as well as distribution facilities in Georgia, California and Chicago. As of Monday, the company had 2,500 full- and part-time hourly and salaried employees.
The case has been assigned to Judge Mary Grace Diehl, a name some will recall as she presided over the Rome News/News Publishing filing and eventual $3.2 million auction to the parent company of the Marietta Daily Journal.
The company’s media release follows:
Beaulieu Group LLC (together with certain of its domestic subsidiaries, collectively, the “Company”) doing business as Beaulieu Group LLC, a family owned flooring company, today announced that it has commenced a formal proceeding to restructure its balance sheet to better position itself for the future.
“To facilitate this restructuring, the company filed voluntary petitions under Chapter 11 in the United States Bankruptcy Court for the Northern District of Georgia, Rome Division.
“The company’s existing lenders have agreed to continue to support the company by providing debtor-in-possession
(DIP) financing that will be combined with its cash from operations to ensure and support continued business operations.
“Beaulieu family members and our board of managers believe pursuing a restructuring through chapter 11 is the best path forward at this time,” said Michael Pollard, President of Beaulieu Group LLC. “We have evaluated alternatives to address Beaulieu’s capital structure, and believe that restructuring through the chapter 11 process will best position all of Beaulieu Group LLC’s businesses for future success.
“This is a necessary process as we continue to execute our long-term strategic plans for the business. Our business model has changed with the industry and our client base since our current capital structure was put into place,” continued Pollard. “This restructuring will allow us to invest in the business going forward and emerge a stronger organization. We remain steadfast in our commitment to our customers and employees throughout this process. I am confident that we have the talented and committed team capable of executing the reorganization plan. We appreciate the support of our vendors and customers as we move through this
The Company has a forty-year legacy of providing innovative solutions to the flooring industry.