Posted: Aug 7, 2012 3:51 PM by MTN News
MISSOULA - Vann's electronics and appliance store has officially filed for bankruptcy protection, with representatives from the Missoula-based company appeared in U.S. bankruptcy court in Butte Tuesday morning.
Vann's CEO Jerry McConnell told Montana's News Station on Sunday that filing for Chapter 11 protection is a means to save the business. Last month the company's primary lender backed out of an agreement, which left Vann's without it major credit line.
McConnell sent out an email to his employees Sunday afternoon explaining the decision to file bankruptcy, and said while it's tough to be in this situation, the good news is, Vann's knows what's wrong with the business.
"It was our own, self-inflicted wounds that created this problem. We can fix those, we can readdress what we're all about and get back to our own core business, which is remain profitable throughout all of this and get away from the other ventures that turned out to be misadventures and we'll be profitable again," McConnell said.
He added the On Store in the Southgate Mall and Vann's two websites were struggling and that the primary retail business was supporting them.