American Security Distribution, an alarm equipment distributor that at one time generated $100 million in annual revenues, is under Chapter 11 bankruptcy protection. The company plans to liquidate its assets and close its doors by mid-February, according to Kenneth C. Cleveland, president and CEO. “The company was overburdened with debt accumulated through the years. It was not able to generate sufficient profit to service the debt,” says Cleveland. In 1998, he says American Security had $50 million in revenues, but lost $15 million.
Cleveland adds that, in November 1999, American and its secured lender started an orderly liquidation of assets. However, one month later several suppliers forced the company to declare Chapter 7, which has since been converted to Chapter 11.
