What used to be a popular spot to sell old, but extremely nice furniture is now the center of a legal mess.
According to court documents, the owner of Colleen’s Consignment wants to hire an auctioneer to sell her inventory. It could help pay off her debt.
“I’ve told people to go to Colleen’s; it’s a great store. Now I’m telling people be careful where you put your things because you may never see them again,” said Pam Grimm, Colleen’s Consignment customer.
Grimm is one of many customers stuck in limbo. She attended a creditors meeting on Thursday at the Federal Foley building.
“It’s such a breach of trust,” Grimm said. “Who knew that you could give your items to somebody and they would use it to pay off their own debt?”
At the meeting, Grimm found out that there’s no guarantee that customers will ever be paid for their consigned items. Since Colleen’s Consignment sudden closure, customers have been urged to hire a bankruptcy attorney.
The attorney for the owner of Colleen’s Consignment sent the following statement:
“While I am unable to comment on the specifics of your questions nor the rights of specific creditors to Colleen & Tom Enterprises, Inc., I am empathetic to their concerns. Since my client filed for Chapter 11 bankruptcy protection, we have followed the procedures laid down by the bankruptcy code,” said James Leavitt, the attorney for Colleen’s Consignment.
The court has also approved an appointment of a noticing agent, who has set up a website for creditors to gain additional information about the case. The deadline to file is March 6.
“I think if somebody takes my things and they don’t give it back, they’re a thief. They should go to jail,” Grimm said.