Marymag Group LLC, doing business as New South Interiors at the Cotton Factory, has filed for bankruptcy.
The downtown Rock Hill furniture and design firm listed assets of $417,745 and liabilities of $1,231,081 with the U.S. Bankruptcy Court in Columbia.
Marymag filed for Chapter 7 bankruptcy, the simplest, quickest and most basic liquidation of business assets.
News of the company's closing was posted on its Facebook page Tuesday with the note, "We appreciate your support the past 3 1/2 years and hope that our store added value to your home."
The firm's doors were locked Tuesday with a note on the door referring people to the trustee and attorney for the bankruptcy.
A sale of the inventory, estimated to be worth $340,000, will be Feb. 25 at 10 a.m. at New South Interiors, 300 Chatham Ave. The sales price will be the highest bid received for each lot.
Sun Trust Bank of Atlanta is a secured creditor and is owed $201,132, according to filings with the bankruptcy court. The bank has agreed that after payment for the cost of the auction, the bankruptcy will receive at least 10 percent of the gross sale proceeds. If Sun Trust receives payment in full of what it is owed, the estate would receive all additional proceeds from the sale.
The company listed $14,163 owed to creditors with unsecured priority claims and $1,016,917 to creditors with unsecured, nonpriority claims.
Priority claims included payments of wages and taxes. According to the bankruptcy filing, the firm owed the North Carolina Department of Revenue $7,000 and the South Carolina Department of Revenue almost $6,000.
The unsecured claims include those who had put deposits on furniture, made loans to the company, or had not been paid for services or goods provided to New South Interiors.