ELLSWORTH — Harmon Tire Inc. at 220 High St. filed for Chapter 11 bankruptcy Aug. 1.
Also, company owner Milton Albert Harmon Jr. filed for personal bankruptcy.
The company has been in business for 72 years, operating a tire center and service bays and, more recently, a car wash.
Harmon Tire Inc. lists in its filing $450,190 in assets and $2.68 million in liabilities. The land, buildings and car wash are listed as belonging to Harmon, rather than the company. Harmon is listed as having $1.31 million in assets and $1.62 million in liabilities.
Chapter 11 bankruptcy is generally used by businesses and individuals with assets or income that can be restructured to pay down debts. It gives the filer time to work out a payment plan, which must be voted on by creditors and approved by a court.
Businesses that file for Chapter 11 generally do so when they want to keep operating, while other types of bankruptcy (Chapter 7, for instance) result in the closing of the business and liquidation of its assets.
Harmon said he has filed a plan, although he did not provide details on whether all of those owed money would receive full payments. Among the debts listed in the paperwork is $78,800 in taxes to the city, as well as $76,000 in water and sewer payments.
In the meantime, Harmon said he expects few changes. All 19 employees are expected to keep their jobs (the company is actually hiring, said Harmon), and he has been looking for new opportunities to stay viable.
“We’re going forward,” said Harmon. “My crew and myself will continue to provide our customers with the same level of automotive service that we’ve done for all these years.”
Harmon said he’s been looking at adding services, such as working on wheelchair lifts, that are hard to find in the county.
“We’re already picking up business doing that,” said Harmon. “There’s nobody else that does it in Hancock County.”
Harmon said he wasn’t sure when the bankruptcy process would be wrapped up but that he’s been told it takes around five months.
According to the filings, the company took in $2.5 million in gross revenue in 2017.