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Posted on Sat, Jun 8, 2013 : 5:56 a.m.

Chelsea Village Hardware holding online bankruptcy auction of remaining inventory

By Ben Freed

The owners of Chelsea Village Hardware, which closed its doors Jan. 5, are holding a bankruptcy auction of the store’s inventory as part of a Chapter 7 bankruptcy filing.

Owners of the store, Tom and Pattie Clemons, claimed in court documents they received no profit from operating the store in 2012 and $20,250 in 2011.

ChelseaHardware.JPG

Chelsea Village Hardware is auctioning off its remaining inventory after closing in January and declaring bankruptcy in February.

John Counts | AnnArbor.com

The couple has outstanding liabilities totaling $461,362.52 according to documents from the U.S. Bankruptcy Court for the Eastern District of Michigan, including nearly $18,000 in unpaid collected sales taxes. Other major creditors include Key Bank, Chase Bank, and building landlord Gary Seitz. Creditors who have not yet come forward must file proof of claim in court by July 15.

According to the bankruptcy filings, Chelsea Village Hardware has $86,491.50 in personal property that can be used to pay off debts, and the store is attempting to make up at least part of the $371,871.02 difference between its assets and liabilities by auctioning off remaining inventory.

The auction will be occurring online through RJM Auctioneers. According to the bankruptcy filing, the wholesale value of the items is $224,804.05 while the retail value is $370,699.48.

As of Friday evening, nearly all of the items were up for auction, which ranged from the store’s neon “OPEN” sign to heavy-duty hardware to clocks and kitchenware. The auction only is available online, and bidding began June 3 and is scheduled to end Monday.

Chelsea Village Hardware first opened as Gambles in 1940. Since then, the store has gone through a number of iterations before the Clemons took over ownership in 2001.

The owners sent a letter to the Chelsea Update in January saying closing the store was a very difficult decision.

According to online city tax records, the store also has not paid $313.61 in property taxes for the winter of 2012. Winter taxes usually are paid in the late winter or early spring of the following year.

The Clemons could not be reached for comment on this story.

Ben Freed covers business for AnnArbor.com. You can sign up here to receive Business Review updates every week. Reach out to Ben at 734-623-2528 or email him at benfreed@annarbor.com. Follow him on twitter @BFreedinA2.

Comments

jns131

Sun, Jun 9, 2013 : 3:51 p.m.

This is not the only mom and pop shop to leave Michigan. Did you hear ACO is also closing 14 stores? Sad but true.

Honest Abe

Sat, Jun 8, 2013 : 11:27 p.m.

This place would still be in business if their prices had been lower. If you wanted to pay top dollar AND some, this was the place to go.

Soothslayer

Sun, Jun 9, 2013 : 1:08 p.m.

Your dollar at a big box costs the community alot more than the increased price of the item at the local store. What are we paying for, where is our money going? Wall Street & shareholders, not communities.

jcj

Sun, Jun 9, 2013 : 12:12 p.m.

Price is not the only factor in places like this staying in business. Dedicated parking helps. If any hardware were in the same location it would not do well. In the old days people went to town to do ALL their shopping. Now they will go to 3 different grocery stores alone to do their shopping.

David

Sat, Jun 8, 2013 : 9:05 p.m.

It's hard to feel bad for them, with so much in unpaid taxes.

Lake Trout

Mon, Jun 10, 2013 : 12:34 p.m.

Sure hope you never end up not being able to pay your bills or taxes for whatever reason David...to bad so sad for you then. Obviously you have no idea what you are talking about or any of the facts about what has happend to these people.

Soothslayer

Sun, Jun 9, 2013 : 1:07 p.m.

what? lrn 2 business

drewk

Sun, Jun 9, 2013 : 4:02 a.m.

300.00 in unpaid taxes? Why does that make it "hard to feel bad" for them?

ddjames

Sat, Jun 8, 2013 : 6:58 p.m.

Inspection isn't necessary folks. This is almost entirely new product with most price tags visible in the photos. Set up an account, view the photos, and start bidding.

jcj

Sat, Jun 8, 2013 : 9:40 p.m.

ddjames You must have a better PC than I. I cannot see any price tags. Hard to buy some things if you need a model number. Might work for a shovel or paint brush. Any idea if the riders run? I thought not.

timjbd

Sat, Jun 8, 2013 : 3:56 p.m.

When cities and counties offer huge tax breaks to attract Walmart, Costco and Home Depot, this is what happens to those who do not receive those breaks. And the money you spend at the big boxes leaves the locality for good. http://reclaimdemocracy.org/new_york_chainstore_subsidies/

talker

Sat, Jun 8, 2013 : 5:50 p.m.

As the sign outside the hardware store on Packard, just southeast of State reads: Buy (buy) local or Bye Bye local.

jns131

Sat, Jun 8, 2013 : 3:27 p.m.

Personal property. Cars, house and et all gone. Wow. What a mess. They won't have much left to retire on after this. We can thank our government for this one. Good luck. Glad I am not you.

jcj

Sat, Jun 8, 2013 : 9:36 p.m.

Nowhere was personal property mentioned. Very few businesses expose their personal property for their business.

drewk

Sat, Jun 8, 2013 : 4:26 p.m.

No, personal property is items in the store that are used to run the business. Such as shelving, computers, desk, chairs.file cabinets etc.

jussayin'

Sat, Jun 8, 2013 : 4 p.m.

In this case it's not the government at fault, it's the big box stores that took their business away.

Jack Gladney

Sat, Jun 8, 2013 : 11:14 a.m.

I'm not sure what the concern over inspection is. Vultures are not picky creatures.

jcj

Sat, Jun 8, 2013 : 9:35 p.m.

Jack You think the owners would rather NOBODY buy anything? It so happens I have known the owners for years!

jcj

Sat, Jun 8, 2013 : 11:01 a.m.

Old News This story is a day late to do any good. according to the auction information yesterday was the last day for inspection.

A2comments

Sat, Jun 8, 2013 : 10:55 a.m.

It's too late to inspect the items per the auction listing.