Popular Raleigh floral and event designer files for bankruptcy
Popular Raleigh special events company Fresh Affairs LLC has filed for Chapter 11 bankruptcy protection, but owner Lyn Graves says the floral company is still in operation and anticipates no disruption to any of his events already booked for New Year's and into 2016.
"All employees are still on payroll," Graves stated in an email. "We are heavily booked for 2016 and are ahead of where we were last year at this point. We just needed help getting through a couple of really slow months."
According to the bankruptcy filing, Fresh Affairs had taken out a couple of short-term loans for nearly $106,000 in 2014 and 2015 to help cover additional costs incurred as the business started growing.
The company also owes close to $80,000 in state taxes and another $41,662 in federal taxes for 2014.
But the company's gross revenue between 2013 and 2015 had grown nearly 69 percent from $688,351 collected in 2013 to $1.16 million collected in 2015, according to the court documents.
Raleigh bankruptcy lawyer Eileen Bornstein, who's representing Graves in the case, says the goal of this bankruptcy case is to give Graves more time to pay off his debts. "They were doing very well, and like what happens with a lot of small businesses they took on some debt to try to catch up," she says. "He needs to be able to pace those payment out. Otherwise, everything else is going on as normal."
Fresh Affairs employs about five or six people full-time, year-round, she says, and it can have as many as 40 part-time or contract employees on staff during the peak wedding and event season between April and October.
Article from:- http://www.bizjournals.com