The owner of The Grabag in Canyon Country has filed for Chapter 7 bankruptcy.
The Halloween specialty store on Soledad Canyon Road reported assets of $517,321 and debts of $700,067 in its Nov. 11 bankruptcy filing…
The Grabag has operated out of several locations in Canyon Country over the last 14 years.
John E. Morth, owner of The Grabag, did not return calls to The Signal on Friday.
While it is not known whether The Grabag’s Chapter 7 bankruptcy filing was voluntary or by court order, the bankruptcy will allow the store to either settle with its creditors or liquidate its assets and distribute the proceeds to its creditors.
The store has sold novelty items, seasonal decorations and costumes.
Chapter 7 proceedings, which usually lead to liquidation of a company’s assets, will allow The Grabag to continue to operate under the direction of a court trustee until the matter is settled.
If The Grabag can resolve its problem and settle with its creditors in the interim, its assets may not have to be liquidated.
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