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Charlotte retailer Queen City Audio Video & Appliances will soon exit bankruptcy protection, under the terms of a court-approved settlement that reduces debts and eases the company’s lease terms.
The firm, founded 60 years ago as a television service company, filed for Chapter 11 bankruptcy protection in February. The company listed assets of between zero and $50,000, and liabilities of between $1 million and $10 million.
This month, a federal judge approved the company’s exit plan. Chief executive Roddey Player said Queen City was able to get out of bankruptcy in under a year by working with its suppliers.
“A lot of hard work put in and creative thinking” alongside creditors helped, Player said. “Our success will be success for them, too.”
The company peaked at 14 stores in 2006, but had begun scaling down and closing locations before the bankruptcy filing. Now, Queen City has four locations, in Charlotte, Salisbury and Morganton.
Player said the company has 90 employees, roughly the same number as when it filed for bankruptcy. He also credited employees for sticking it out through the process.
“If I’d had a mass exodus of employees or something, that would have been it,” Player said.
With finances stabilized and new credit facilities from lenders, Player said the company will have new products in its showrooms soon.
“We’re tickled to death” to be getting through bankruptcy, Player said. “It’s a way to kind of take a breath and look at your business. ... There are ways to get through (bankruptcy). It doesn’t mean the end.”
