An Illinois logistics firm that specialized in perishable foods and other time-sensitive loads has filed for Chapter 7 bankruptcy.
Lions Logistics Inc., doing business as Lions Logistics 1, filed its petition in the U.S. Bankruptcy Court for the Northern District of Illinois on Tuesday.
In its filing, Lions Logistics 1 lists assets of up to $50,000 and liabilities of between $100,000 and $500,000. The shuttered logistics company states that it has up to 49 creditors. The company maintains that no funds will be available for unsecured creditors once it pays administrative fees.
The petition lists Khaled Nabout as president of the logistics firm, which was headquartered in Elk Grove Village, Illinois.
Dakota Financial, which has a lien on the company’s 2015 Volvo VNL780, is listed as the only secured creditor in the filing. Dakota has also filed a breach-of-contract lawsuit against Lions, along with another company, Corona Fruits and Veggies Inc., which is also suing the logistics company over a lost load of perishable freight, costing it nearly $38,500.
According to Lions Logistics’ financials, its gross revenues were $120,000 in 2020, a 96% drop from the company’s nearly $3 million in revenue it posted in 2019.
The company had one power unit and one driver, according to the Federal Motor Carrier Safety Administration SAFER website. Its authority was revoked in March 2020.
Lions Logistics’ attorney, David Freydin of Skokie, Illinois, told FreightWaves that the COVID-19 pandemic and tariffs with China contributed to the logistics company shuttering operations.
A creditor’s meeting is scheduled for March 22.
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