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Technology-products distributor WYNIT Distribution LLC, which filed for bankruptcy protection Friday, said its bank lenders will fund the cash-strapped business until it can find a buyer at a court-supervised auction.
Lawyers for WYNIT said in papers in U.S. Bankruptcy Court in Minneapolis that the company and its affiliates won’t have the cash to fund its payroll, absent a bankruptcy loan from its senior lenders.Those lenders, led by Wells Fargo , have agreed to provide $15 million in debtor-in-possession financing to fund WYNIT’s business pending a sale.
I talked with a couple of friends who used to work here this weekend and what they told me is pretty crazy.
If what they say is true (embezzlement, lavish vacations with vendor money, stolen artwork, and more), Wynit will be in the news again with possible criminal charges.
Technology-products distributor WYNIT Distribution LLC, which filed for bankruptcy protection Friday, said its bank lenders will fund the cash-strapped business until it can find a buyer at a court-supervised auction.
Lawyers for WYNIT said in papers in U.S. Bankruptcy Court in Minneapolis that the company and its affiliates won’t have the cash to fund its payroll, absent a bankruptcy loan from its senior lenders.Those lenders, led by Wells Fargo , have agreed to provide $15 million in debtor-in-possession financing to fund WYNIT’s business pending a sale.
I talked with a couple of friends who used to work here this weekend and what they told me is pretty crazy.
If what they say is true (embezzlement, lavish vacations with vendor money, stolen artwork, and more), Wynit will be in the news again with possible criminal charges.
There almost has to be a story behind a company that goes from aggressive expansion one year to bankrupt the next year.
There almost has to be a story behind a company that goes from aggressive expansion one year to bankrupt the next year.
It could be that the owners are just crappy businessmen. But the statement in the paper blaming the market is pretty ludicrous. And the chapter 11 filing contradicts their statements in the paper as well. They are clearly selling off the business, not trying to save it.
In a declaration to the court, Richichi said Wynit generated $1.1 billion in gross revenue last year and profits of about $18 million.
As of the Sept. 8 bankruptcy petition date, according to court documents, Wynit owed employees for unpaid gross wages, commissions, benefits, salaries, payroll taxes, reimbursements and 401(k) contributions. Wynit owes $181,554 in payroll taxes alone, according to court documents.
In his bankruptcy declaration, Richichi asked for permission to use a post-bankruptcy loan to continue paying its remaining 145 employees and to pay wages owed to those who were laid off, up to a maximum of $12,850 each.
"These people should not be made to suffer further by waiting to receive one of their final (or in many cases, their final) pay checks," Richichi wrote.
The word going around among former employees is that Richichi and Lewis, the two owners of Wynit, gave themselves a total of $12million in bonuses this year while the company was losing money.
Yet, they claim they need a loan to pay their employees what they're owed.
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