COST LESS DISTRIBUTING, INC. Bankruptcy Filing

COST LESS DISTRIBUTING, INC. Filing Information

COST LESS DISTRIBUTING, INC., a Michigan-based corporation, has filed for Chapter 11 bankruptcy protection on October 7, 2024 (bankruptcy date). The company's filing, case number 24-31912, marks the beginning of an official process aimed at reorganizing its debts and restructuring its financial obligations. As the debtor in this case, COST LESS DISTRIBUTING, INC. will need to present a comprehensive plan for its financial recovery, which will be reviewed by Judge Joel D. Applebaum presiding over the Michigan Eastern Bankruptcy Court. The corporation's address of record is listed as 4381 Davison, Burton MI, from which it will operate during this restructuring period. The Chapter 11 bankruptcy process allows COST LESS DISTRIBUTING, INC. to continue operating while it seeks to restructure its debts and achieve long-term financial stability.

Cost Less Distributing, Inc. filed for bankruptcy, leaving its financial future uncertain. The company's assets are valued within a narrow range of $0 to $100,000, a stark contrast to the substantial liabilities it has accrued, with estimates ranging between $1 million and $10 million. This significant disparity highlights the challenges faced by the business in managing its finances. With only one creditor listed among the 49 creditors that will be impacted by the bankruptcy, the company's debt burden is concentrated on this single entity. As a distributor, Cost Less operates within a competitive industry where maintaining financial stability is crucial for long-term success. The specifics of the case remain unclear at this time, but the bankruptcy filing raises questions about the company's ability to recover and restructure its debt.

COST LESS DISTRIBUTING, INC. indicated on its bankruptcy petition that it does not expect there will be sufficient assets in the estate to make a payment to the unsecured creditors.