2-year Circuit City Bankruptcy Fight Results In 100% Tax Recovery
West Palm Beach - - - Anne M. Gannon, Constitutional Tax Collector, announced a $42,176.63 settlement with Circuit City Stores, Inc., Liquidating Trust which represents 100% of all unpaid 2008 tangible personal property taxes. “The law is very clear. Bankruptcy isn’t a pass or pardon on paying owed taxes,” said Gannon. “Tax collectors typically have first lien rights which are superior to all other liens in bankruptcy proceedings.”
Circuit City, once America’s 2nd largest electronics retail chain, filed for bankruptcy in November of 2008. Circuit City operated 567 stores in the United States plus 765 stores in Canada and employed approximately 37,000 across its operations. The downturn in the economy, competition from Best Buy and Wallmart, and poor management decisions are often cited for its financial demise.
Several months after Circuit City’s filing, Gannon joined with other Florida tax collectors opposing Circuit City’s proposed treatment of tax claims asserting their right to payment of taxes. “These tax dollars rightfully belong to our county.” said Gannon. “I want to make sure we collect all owed revenue to help keep firefighters, paramedics and other vital services for our citizens funded.”
Tax Collector lien rights are spelled out in Florida Statute, Chapter 197.122.
|Contact:||Anne Gannon, Constitutional Tax Collector|