Claborn files for Chapter 7
Wednesday, October 24, 2007
GALESBURG - The meat market at Henderson and Main streets has filed bankruptcy in U.S. Bankruptcy Court in Peoria.Claborn Select Meats Inc., 87 N. Henderson St., filed for protection under Chapter 7 of the U.S. Bankruptcy Code on Oct. 12. The company, owned by Larry Claborn of Elmwood, listed assets of $269,660 and liabilities of $662,084.
Many residents may remember the business as Alwan and Sons Co. The Galesburg store was sold to Claborn in 2004 after 13 years here. Alwan's, which was managed here by Pat Alwan, has been in business for 50 years and still has its store at 703 E. War Memorial Drive in Peoria Heights.
According to FedSpending.org, Claborn Select Meats received a loan of $320,625 from the Small Business Administration in federal fiscal year 2004. Loansenseplus.com reports a loan that year to Claborn's from Associated Bank. However, it is unclear if that is a separate loan or whether the SBA loan was obtained through Associated Bank.
The first meeting of creditors for Claborn's is scheduled for 2:30 p.m. Nov. 16 on the second floor of the Knox County Courthouse. During that hearing, creditors will let the court know if money is owed to them by Claborn Select Meats. Because a Chapter 7 bankruptcy is an attempt to have debts discharged, as opposed to Chapter 11, which is a reorganization, creditors opposed to the filing will have a chance to have their say during the first meeting of creditors.
Chains operating in this area that have successfully emerged from Chapter 11 bankruptcies include Kmart and Bergner's.
Galesburg attorney Jack Ball is representing Claborn's. Attempts to reach Ball for comment were unsuccessful. A call to Claborn Select Meats at 2:35 p.m. Tuesday went unanswered and did not go to a voice mail message.
Richard Barber is the trustee in the case.
