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EMPIRE VIDEO DISTRIBUTION FILES FOR BANKRUPTCY PROTECTION
By: Paul Goldberg, Staff Writer - 07-21-09 - 10:10 a.m. PDT
Owner of debunked Empire Video Distribution filed for Bankruptcy back on June 23.Owner Roy Karch closed his Chatsworth warehouse back in February after a decade of service.
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Alledgely, Karch owed hundreds of thousands of dollars in unpaid invoices from his vendors. In Karch's Chapter 7 bankruptcy filing, Karch claims that Empire Video Distribution's dets totaled $ 990,907.77 against Empire Video's assets of $ 35,500.00. In the Chapter 7 filing, Karch owned 89 percent of the distribution outlet and had full ownership of their studio production house Pacific Coast and Epic Interactive. He also was 75% owner of Xcartel Productions.
Karch’s biggest creditors includes Jules Jordan Video to which he claims $65,463 is owed and LFP Video Distribution has accounts receivable totaling $105,654; Platinum X Pictures has $50,320 in outstanding invoices; and Private is out $23,867.
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Vendors will have a hard time collecting their debts because the companies that were owned by Karch have little to no value to pay off said creditors.
Karch claims some of Empire’s woes were due to their warehouse manager not invoicing retailers who were being shipped Empire Video products.. Sales consistently dropped for the company as content delivery shifted towards the Internet, but the company is “still collecting accounts receivable and attempting to pay down corporate debt, which far exceeds the value of the collectible receivables.
The economy has shut down a number of studios and distributors over the past 12 months. We hope that this trend will quickly stop.
