New York component distributor Diplomat Electronics, which filed for Chapter XI bankruptcy protection earlier this month, is selling off its inventory and going into liquidation. Distribution bases in Dallas and Austin, Texas; San Jose, California; Clearwater, Florida; and Salt Lake City, Utah and the company is down to 16 employees. The court papers show assets of $18.4m and liabilities, including $26.5m of secured debt, totalling $31.9m. The assets include $8m in inventory and $4m in accounts receivable. Biggest unsecured creditor is Texas Instruments, which is owed $1.5m. Diplomat blames poor sales as a result of problems that are endemic to the electronic component parts industry, loss of major franchises, and the failure of secured lender CIT Corp to continue funding the debtor.
Content from our partners
