Bean Lumber Bankruptcy Blamed On Scam

by Mark Friedman  on Monday, Jan. 27, 2014 12:00 am  

Kirsch “is still upset about the threats and allegations” that Bean made, according to Parlin’s email on March 23, 2011.

Bean said in the lawsuit that, despite promises to return the depository fee, he had received only $25,000.

Bankruptcy

On June 14, 2011, Bean Lumber — like C. Bean Transport 15 months earlier —filed for Chapter 11 bankruptcy.

Bean Lumber’s filing showed combined revenue from the previous two years of $56.1 million, but it didn’t break down how much it received in each year.

Bean Lumber also reported that it was named as a defendant in 20 lawsuits between 2008 and 2010, nearly all of which were for collection of debts.

Kirsch wasn’t mentioned in Bean Lumber’s bankruptcy, though. The lawsuit doesn’t say why Bean Lumber waited until the end of 2013 to seek civil damages.

Bean Lumber’s suit alleges fraud and breach of contract against Kirsch, Malteco Business Consulting Group and several other defendants. Bean Lumber and Grady Bean are seeking an unspecified amount of damages tied to the failure to get the money and the resulting descent into bankruptcy.

Bean Lumber, however, asked in November 2011 to be dismissed from bankruptcy reorganization because its main asset — its plant — was handed over to its creditor.

“The possibility of an effective reorganization does not exist at this time,” Bean Lumber’s attorney, Stanley Bond, wrote in a bankruptcy court filing on Nov. 22, 2011.

U.S. Bankruptcy Judge Richard Taylor agreed and ordered the case dismissed on March 1, 2012.

 

 

Please read our comments policy before commenting.
Search

Latest Arkansas Business Poll

Should the alcohol amendment remain on the ballot?