Phoenix Home textiles will close down on April 29, the company announced Tuesday.
The company says it has received more than $1 million in debt from investors and creditors.
The debt is due to a series of missteps by Phoenix Home, including its failure to comply with an internal policy that prohibits certain types of debt for three years, according to the company.
The first creditor notice issued to the firm came in February, but the company failed to meet the deadline to repay $1,857,500 of its debt, the letter said.
The second creditor notice was issued on March 11.
“The company continues to work diligently to address these issues,” the company said in a statement Tuesday.
We are working with our creditors to make these changes as soon as possible.” “
As a result, Phoenix Home is no longer able to continue as a business and it will be taking steps to close the business.
We are working with our creditors to make these changes as soon as possible.”
The company’s CEO, John Kostrzewicz, said in the statement that he has resigned from the company and that the company has been in voluntary bankruptcy protection for the last three years.
He said the company will now take steps to reorganize.
Phoenix Home will close in September, the statement said.
Phoenix is the sixth company to file for bankruptcy protection in the past two years.
Three of the companies are textile mills in Ohio.