A Westminster-based manufacturer of tools and power equipment ranging from lawn mowers to drills used by ice fishermen has filed for Chapter 11 bankruptcy.
Frictionless World said in a Sept. 30 filing that the company has $14.6 million in assets, including $6.4 million in inventory and $4.54 million in cash on hand. The company said it has liabilities totaling $17.36 million, although it disputes many of the claims.
Companies use Chapter 11 bankruptcy protection to reorganize and help keep the business alive, paying creditors over time.
Frictionless World is the parent company of multiple brands: Dirty Handy Tools for power equipment, RanchEx for ranching equipment, Redback for lawn care equipment, Trophy Strike for ice fishing equipment and Vinsetta Tools for logging equipment.
Frictionless World, owned by CEO Dan Banjo, said in court filings that it had revenue of $26.22 million in 2018, up from $17.57 million in 2017. The company reported revenue of $17.72 million in the first nine months of this year.
The bulk of the claims against the company — one of which is for $12.64 million — are made by creditors with Chinese mailing addresses, and are disputed by the company. Frictionless World said in the filing that it is in the middle of an arbitration dispute with several Chinese entities that concerns breach of contract and fraud.
Attorney David Wadsworth of Wadsworth Garber Warner Conrardy is representing the company in the bankruptcy proceedings.
Banjo and Wadsworth did not respond to separate requests for comment.