Posted: Aug 5, 2012 10:10 PM by Breanna Roy - KPAX News
Updated: Aug 6, 2012 12:00 PM
MISSOULA- Vann's electronics and appliance store in Missoula filed for bankruptcy Sunday morning. The mover came after the company's primary lender backed out of an agreement last month, leaving Vann's without it major credit line.
Vann's CEO Jerry McConnell, who took the job in June, says filing for Chapter 11 protection is a means to save the business. He sent out an email to his employees this afternoon explaining the decision to file bankruptcy.
McConnell says that 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 explained.
McConnell says the "On" store in the mall and Vann's two websites were struggling and that the primary retail business was supporting them.Vann's will be in federal court on Tuesday which McConnell hopes grants Vann's the right to carry on business as usual under the bankruptcy plan.