The stores that turn pictures into old-fashioned Poloroid photos are in financial trouble.
The owner of the stores, located in the
This move is being done in preparation for a sale of some of the assets, said Phelan, of
"I'm going to operate the company. I have a sale of some of some their assets to a new investment group that will bring fresh cash to the deal and carry the business forward," Phelan said.
"We already have a bidder intent on keeping it open as a going concern," said
Phelan said it is likely the
But a store in the Falls shopping center in
"The assignor is indebted to creditors and is unable to pay its debts and is desirous of providing for payment of its debts so far as it is possible," the filing states.
The filing lists
Phelan said the circuit court assignment often is done as an alternative to a bankruptcy filing, which is costlier and can take a long time to resolve.
The Fotobar stores are usually filled with a steady stream of customers looking for ways to display photos languishing on their smart phones. Pictures can be turned into Polaroid photos, mounted in shadowboxes or clipped to a string to hang along a wall.
The national testing ground for this new kind of photo store was at the
But despite the whir of activity at the stores, Phelan said the company ran into trouble due to high overhead expenses, such as the rent at its leased mall stores.
Although Fotobar's finances are shaky, there's reason to be optimistic, said Shraiberg, of Shraiberg, Ferrara & Landau.
A number of companies that are restructured "are much better off. I'm hopeful that it will happen in this case," Phelan added.
(c)2014 The Palm Beach Post (West Palm Beach, Fla.)
Visit The Palm Beach Post (West Palm Beach, Fla.) at www.palmbeachpost.com
Distributed by MCT Information Services