401KExchange files for Chapter 7 bankruptcy
By Robert Steyer | September 21, 2012 4:27 pm
401KExchange Inc. filed a voluntary Chapter 7 bankruptcy petition on Friday in U.S. Bankruptcy Court in Wilmington, Del.
According to the filing, the defined contribution plan research and services firm had 1,000 to 5,000 creditors, estimated assets of $500,000 to $1 million, and estimated liabilities of $1 million to $10 million.
The filing lists the firm's headquarters at West Palm Beach, Fla.
Calls to Richard A. Schell, the company's president and CEO, and board members Stephen J. Getsy, Robert Brill and W. Edward Scheetz were not returned by press time.
The filing included a statement by the majority shareholders — firms and trusts in which Messrs. Getsy, Brill and Scheetz are involved — saying in part that the company “has experienced severe financial difficulties and is in danger of certain imminent financial harm.”
The statement added that these shareholders, who own more than 50% of the company's stock, determined “that it is in the best interest of the company to seek relief under Chapter 7 … in an effort to protect and equitably distribute its assets to its creditors and parties-in-interest.”
The attorney filing the bankruptcy petition for the company, Stephen Spence, of law firm Phillips Goldman & Spence, did not return a call for comment by press time.
According to its website, 401KExchange was founded in 1996 and has provided business development, market intelligence and due diligence services for 401(k) plans and other retirement plans in small and midsize corporate markets. In May, the firm announced an additional round of financing from current investors, but it didn't identify the amount or the investors.