Sandwich maker files bankruptcy. Everyone loves sandwiches. They are one of the most popular food staples in America. Sandwich shops are everywhere. The problem for stores is there are too many competitors. Another problem is the economy. People have been hit hard. Job loss. Medical bills. Soaring insurance costs. It can overwhelm anyone. Individuals have been turning to bankruptcy lawyers for help. Corporations have had to turn to bankruptcy attorneys as well. A popular sandwich maker had to turn to a bankruptcy lawyer as well. Seattle, Washington based Paseo was very famous in Seattle for their sandwiches. No one seemed to sense any trouble. That was until Tuesday. Both of their locations were closed. No one had any notice of this. Then the next day, the chain took the next step. It filed a Chapter 7 bankruptcy. The bankruptcy court filing lists debts of more than $30,000 to various creditors. The company also faces unknown tax debts. This was due to civil lawsuit filed by four former employees. The bankruptcy filing states it owes money to vendors, utilities, and twenty workers or former workers. The company has assets of about $82,000. The filing also stated that Paseo has paid more than $251,000 over the past three months in payroll, employee taxes, and benefits. The bankruptcy stated the company had more than $2 million in sales last year. This year sales were $1.7 million. The four ex-employees filed suit claiming they were owed money. This claim was unpaid overtime and other wages. Customers were stunned by this bankruptcy filing. So were the vendors who supplied the chain for a long time. The company has been in business for over twenty years. This goes to show that bad times can happen to anyone. Even a beloved sandwich institution. The Chapter 7 bankruptcy filing means the assets will be liquidated and the chain is going out of business. The debts forced the company to seek the counsel of a bankruptcy lawyer. Like many in this economy, it was the only way out of the debt they faced.
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