CLEVELAND (WJW) — A Cleveland-based retail catalog company is shuttering after failing to raise money to avoid bankruptcy.
AmeriMark Interactive LLC is expected to lay off 223 workers between its Berea and Middleburg Heights locations, which are expected to close by June 6, according to state filings. The layoffs began earlier this month.
AmeriMark is a privately held seller of women’s apparel, cosmetics and more that has been in business since 1969, according to its LinkedIn page. Its merchandise was sold in eight catalogs including: Anthony Richards; Beauty Boutique; Complements by Anthony Richards; Essentials by Anthony Richards; Healthy Living; Time for Me; FeelGood STORE; and Windsor Collection.
The company filed for bankruptcy on April 11, according to a bankruptcy notice that has replaced its website.
“The Company has been in the process of seeking capital or a sale, which, if obtained, would have enabled it to avoid or postpone a closure and continue operations,” reads an April 10 layoff notice filed with the Ohio Department of Job and Family Services.
“Unfortunately, the Company has been unable to obtain additional working capital from its lenders and the sale process has not been successful. This outcome was not reasonably foreseeable, but due to these unexpected circumstances, the Company can no longer sustain the operations. As a result, the Company has made the difficult decision to cease operations and is providing as much notice as practicable of this closing.”
Among the reasons for the company’s failure, as cited in its bankruptcy notice, were unanticipated catalog printing delays, vendor “deficiencies,” a change of ownership that’s now being disputed in court, fluctuations to its supply chain and demand following the COVID-19 pandemic and subsequent inflationary pressures.
AmeriMark is now trying to find a buyer. The first bankruptcy hearing was scheduled for earlier this month. The proceedings are expected to take a couple months.
Customers who bought products that did not ship before the bankruptcy filing will not be charged.
“The Companies are hopeful that one or more buyers of their assets will restart selling their products, but cannot promise that that will occur,” reads the bankruptcy notice.
Customers with outstanding balances are still obligated to pay, however. They can call 888-373-1092 to make a payment.