DAYTON — Stitches Galore, LLC, which does business as The Blue Monkey in Springboro, Miamisburg and Middletown, on Aug. 4 filed for Chapter 11 protection in U.S. Bankruptcy Court in Dayton.

The move comes just weeks after the company lost a lawsuit for money damages filed by a landlord, Mehland Developers, in Montgomery County Common Pleas Court for lease payments that were past due. The judgment was for more than $85,600, plus any additional postjudgment interest.

In its bankruptcy petition, the company lists assets of $36,494 and liabilities of $108,928.

The company said it was unsure of its income due to “accounting irregularities in the past.”

Cynthia LaPierre said the company’s problems can be traced back to theft by a former employee of another company in which LaPierre had an ownership stake, Worldwide Net. That employee also handled the finances for Blue Monkey, she said.

“We’re not closing,” LaPierre said.

The Blue Monkey provides custom screen printing and embroidery services, according to its website, bluemonkeyss.com

According to the website, the company has three store locations: 857 W. Central Ave. in Springboro; Kitty Hawk Plaza, 4464 Marie Drive, Middletown; and 28 W. Linden Ave. in Miamisburg.

Chapter 11 bankruptcy is the most common form of bankruptcy, freeing a company from the threat of creditors’ lawsuits while it reorganizes its finances. The debtor’s reorganization plan must be accepted by a majority of its creditors.

Contact this reporter at (937) 225-7457 or bsutherly@DaytonDailyNews.com.