Entertainment Publications, LLC, which most of us know as the company that sold the chunky Entertainment coupon books, surprised many parent groups last week when it filed for Chapter 7 bankruptcy.
The company is owned by MH Equity Partners, an Indianapolis-based investment firm that according to a March 14 report in the Indianapolis Business Journal has had its own financial difficulties. The Journal reported that MH Equity’s portfolio has lost nearly 70 percent of its value, and a rift developed that resulted in the dismissal of one of its two founding partners.
Entertainment Publications’ Chapter 7 voluntary petition was filed on March 12 in the U.S. Bankruptcy Court in the District of Delaware. A Chapter 7 filing means a liquidation of the business, with assets sold to pay off creditors. Entertainment Publications referred questions to an attorney, who could not be reached for comment.
The company’s website indicates that the coupon books are still available for sale. (See screenshot of Entertainment Publications’ homepage, right.) However, it’s not yet clear what recourse will be available to PTOs or PTAs with pending orders.
When news of the shutdown broke last week, we heard from one group leader who told us his group would be out $3,000 because of the sudden closure. Another parent group leader reported on our Facebook page discussion that she had received an email from the company to set up a meeting on the same day it officially filed for bankruptcy. Yet another leader said she tried to contact her rep by email last week and received a bounce-back.
When the company filed for Chapter 7, it did so with a motion to extend the deadline to file related schedules and information to the court.
In the meantime, the court has set a meeting with Entertainment Publications’ creditors for April 8. The company submitted a 65-page list of creditors with its bankruptcy filing.
The Entertainment Book company was founded in 1962. In recent months, it had been working with partners to go digital with its coupon offerings.