A nearly 40-year-old garage door installation company filed for bankruptcy last week.
American Overhead Door, founded in Colorado Springs in 1985, said in its Chapter 11 filing that it owes just over $3 million and has assets of $748,000. Owner Gary DeJong signed the filing.
Chapter 11 bankruptcy allows a business to restructure and keep operating while paying creditors over time.
According to its website, American Overhead Door does garage door installation and repairs for residential and commercial properties. It also installs automatic driveway gates and security doors.
DeJong acquired the business in 2010, according to the Colorado Springs Business Journal, and scaled the business to seven locations around the state. None are in the Denver metro area.
The filings show revenue slowed this year compared to years past. The company reported roughly $8 million in revenue last year and just $3.4 million from January to the filing date.
American Overhead Door’s top creditor listed is Vectra Bank, with a secured claim of $653,816.
The majority of the company’s unsecured creditors are customers who put down deposits for work on their property. The filings mention nearly 250 customers, each owed anywhere from a few hundred dollars up to $39,500.
Other creditors include 19 employees who are owed for unpaid bonuses, vacation time and contribution to retirement plans. According to filings, American Overhead Door owes roughly $80,972 to employees.
DeJong himself is also a creditor, owed $16,781 in retirement plan contributions and $160,930 from a loan.
American Overhead Door’s assets include 31 vehicles, nine trailers and accounts receivable.
Attorney Jonathan M. Dickey with Kutner Brinen Dickey Riley PC is representing the company in bankruptcy proceedings. He did not respond to requests for comment.