The last few years of economic turmoil have certainly taken their toll on Ohio businesses. Liggett Stashower, a well-known Ohio advertising agency, had an ominous start to the year, laying off most of its employees in mid-January. Now, news comes that the company has filed for chapter 7 bankruptcy and plans to close its doors for good.
The business bankruptcy might come as a surprise to some, as the president and managing partner said as late as Jan. 23 that the company was just "on hiatus" and in the middle of a reorganization. However, to many the writing was already on the wall. According to Cleveland.com, in a recent letter to associates and friends, the president noted that the company's efforts to reorganize and keep its doors open did not come to pass.
He says that the company, which was at one time the second largest advertising agency in the Cleveland area, decided to wind down its affairs through a chapter 7 filing. The company listed debts of $2.7 million and assets of $1.42 million, according to filings with a U.S. Bankruptcy Court. The company's assets will be sold.
As recently as two years ago, the company had 60 employees. That was cut in half by the end of last year as the agency struggled. Yet more offices went dark early this year.
The company has been around since 1987, when a merger of two advertising agencies, Carr Liggett Inc. and Lang, Fisher & Stashower Advertising Inc., formed Liggett Stashower.
Source: Cleveland.com, "Liggett Stashower closes doors, files for chapter 7 bankruptcy," Janet Cho, Feb. 6, 2012