Jonesboro’s Nelson Design Group Files for Bankruptcy

The Nelson Design Group LLC of Jonesboro filed for Chapter 11 bankruptcy reorganization earlier this month and listed debts of $3.4 million.

The group, which sells home designs to builders and homebuyers, listed assets of $890,000.

The largest debt ($1.9 million) is owed to Arkansas Capital Corp. of Little Rock.

That debt is secured by residential and commercial stock plans, according to the filing by the group’s attorney, Joel Hargis of the Hargis Law Office in Jonesboro.

Michael Nelson, the managing member of the company, told Arkansas Business in November 2014 that the Great Recession was a rough time for him. He had to cut his workforce from 44 to 10 during 2007-08.

His revenue, which had been $4 million in 2006, tanked. And it looks like it never recovered.

The filing showed that in 2015, revenue was $960,479, down 3.12 percent from the previous year.

The other owners of the company are John Perry, who owns 27.8 percent, and Kemp Whisenhunt, who owns 11.1 percent.

The addresses listed for them are the same as the company.