DULUTH, NM – September 7, 2012 – (Motor Sports Newswire) – The financially troubled Duluth-based Internet Marketing and Web Design Company 50 Below, has filed for Chapter 11 Bankriptcy and expects come out of bankruptcy in less than 120 days.
The troubled past of the company dates back to 2000.
At one point, the company was investigated by the IRS for failing to pay employee taxes. Last November, a cash flow issue left some of the company’s employees waiting more than a week to get their paychecks.
As part of this week’s filing, 50 Below has secured an attorney and financial consultant to get the company back on track.
To financially restructure, the company is working with GuideSource, a Twin-Cities based financial consulting firm.
50 Below reports record revenues and profits for the first half of 2012. Revenues are up 31 percent to $10.3 million from last year. Profits through June of 2012 were $850,000, as compared to losses of more than $1.2 million in the first half of 2011.
Meanwhile, according to documents filed with US Bankruptcy Court on Wednesday , the company has more than $12 million in unsecured claims, nearly $8.8 million of which is owed to the IRS, and another $1 million to the Minnesota Department of Revenue.
A meeting of the creditors will be held on October 5th.
SOURCE: Northland’s NewsCenter