Tire and automotive industry web developer 50 Below has filed for Chapter 11 bankruptcy in Minnesota.
The Duluth-based firm had been entangled in “years of financial battles” with both the Internal Revenue Service and Minnesota Department of Revenue, according to a story in the Duluth News Tribune.
According to the newspaper, 50 Below filed for bankruptcy protection on Aug. 29, “claiming it had $10 million to $50 million in liabilities.”
50 Below’s bankruptcy attorney Mike McGrath told the newspaper that the company would not have to lay off any employees, and had posted a profit of “$800,000 through the first part of 2012.”
According to the report, 50 Below had been facing tax debt issues since 2006, and reportedly piled up millions in both federal and state payroll taxes.
The bankruptcy filing will allow 50 Below to repay its tax debt in a structured fashion over five years, McGrath said, while giving the company the opportunity to restructure itself.
