Stephany’s Chocolates on Thursday filed for Chapter 7 bankruptcy, two weeks after the gourmet candymaker closed its five metro-area stores.
Three creditors of Arvada-based Stephany’s initiated the filing in U.S. Bankruptcy Court in Denver under its corporate name of Columbine Candy Co.
The three creditors are Mary Jo Gurley, William A. Coleman and Leslie J. Julian.
Gurley’s husband, Mark, is a co-owner of the company. Coleman and Julian are former employees.
Stephany’s shuttered its stores and 22,000-square-foot candy factory April 19.
The company was underfunded and struggled to control costs, Mark Gurley said.
First National Bank of Colorado, a secured creditor, had recently initiated a foreclosure process to liquidate Stephany’s assets.
The bankruptcy filing pre-empts the foreclosure.
“We cannot pursue any collection activity without the permission of the bankruptcy court,” said Gary Ashley, First National’s executive vice president.
Ashley said the bank will likely file a claim with the court today.
“We decided to file bankruptcy to preserve Stephany’s Chocolates, the entity,” Mark Gurley said. “We were concerned that without the bankruptcy filing … the assets would be sold in the foreclosure sale, which would ultimately destroy the company.”
Hal Strottman, Ed Meade and Mark Gurley purchased Stephany’s in September 2004. Strottman owned 50 percent, Meade owned 35 percent and Gurley owned 15 percent, according to Gurley.
Strottman died April 4. His death has been ruled a suicide.
Staff writer Andy Vuong can be reached at 303-820-1209 or avuong@denverpost.com.
