Due to a reduction in business and the inability to make debt payments, entities affiliated with C&M Mushrooms in Avondale have filed for Chapter 11 bankruptcy protection, writes Natalie Kostelni for the Philadelphia Business Journal.

The company that trades under the names C&C Entity, Cardile Mushrooms, and Cardile Mushrooms C&M made the bankruptcy filing on Sept. 18.

According to Paul J. Winterhalter, an attorney with Offit Kurman, who represents the mushroom company, the move was mainly forced by secured creditors.

Cardile Mushrooms and Cardile Mushrooms C&M each listed assets of $0 to $50,000 and liabilities that ranged between $1 million and $10 million. Meanwhile, C&C Entity listed assets and liabilities of under $50,000.

The company, which is owned and operated by brothers who work on a four-generation family mushroom farm, has been in contact with its lenders, which have mostly been cooperative. C&M is now hoping to keep its business operational while going through the reorganization process.

“The companies are very transparent,” said Winterhalter. “They are obligated to report sales going forward and sales are improving. To grow mushrooms, you need to keep current on obligations and they are doing that.”

Read more about C&M Mushrooms in the Philadelphia Business Journal here.

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