Longaberger has decided to liquidate its assets rather than restructure.
The basket maker and its parent JRJR Network initially filed for Chapter 11 bankruptcy reorganization in July. The company listed between $1 million and $10 million in assets.
A Texas court has granted Longaberger’s request to change its bankruptcy case from Chapter 11, to Chapter 7, which forces liquidation of the company’s assets, the Columbus Dispatch reports.
The maker of handcrafted woven baskets announced it was going out of business in May. The basket company has had a slow decline from its peak $1 billion in sales and nearly 8,000 employees, according to the Columbus Dispatch.
About two years ago Longaberger left its famous basket-shaped headquarters building in Newark, east of Columbus, and late last year had moved 25 miles further east to Dresden.
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