In Louisville, Kentucky, it was announced Levy’s Lumber and Building Supply will be sold at an auction on December 18th—later this winter. The lumber and supply store remains Jacob Levy & Brothers, Inc.’s, last asset. Levy & Brothers filed for liquidation under the Chapter 7 Bankruptcy Code, nearly eleven years ago.
The property, which is being sold “as is,” is expected to fetch close to $2.5 million in December. Back in the October of ‘09, Jefferson Circuit Judge Ken Conliffe handed down the orders to sell the property and give all of its earnings to the New York City-based, secured creditor, First Step Capital, LLC. First Step is holding notes which are secured via the property’s mortgage.
In 1998, Fallsview Enterprises, Inc., based in Florida, had received financing from Gordon Brothers Capital, LLC, to buy the family owned and managed, Jacob Levy & Brothers, Inc.. Then, a year later, Fallsview filed for Chapter 7—to liquidate its year old purchase. Then, in immediate response to Fallsview’s filing, Gordon Brothers filed a secure claim for $3.6 million, which has reportedly jumped to $4.86 due to interest.
Back when Jacob Levy & Brothers was sold, it had employed 300 people and oversaw four Levy’s Lumber stores throughout Louisville. At the time of its sale, the company was owned and operated by its family for 97 years. Steve Levy, President and CEO when the company was sold, was both popular and highly visible in the community.
It has taken two years to sell the last of the Levy’s assets—largely because of the time devoted to First Step’s claim—which included numerous objections from the Levy family. Once the family’s claims were all finally addressed, Judge Wendell Roberts, in July, ordered the case return to Jefferson Circuit Court and treated as a “foreclosure and sold.” According to the terms of the sale, the winning buyer must deposit $500K in cash or back check and pay off the balance within 30 days of purchase.