Collins Signs Bankruptcy Trustee Wins Lawsuit

By: Rhiana Huckins Email
By: Rhiana Huckins Email

In 2002, Collins Signs filed for bankruptcy.

The bankruptcy trustee for Collins Signs filed a federal lawsuit against Nissan North America. On Thursday, they won.

They were awarded $13.8 million dollars.

It’s one of the largest judgments to come out of a federal case in our area.

Collins Signs was once a thriving business in the Wiregrass, making signs for more than 30 major brands.

However, after agreeing to do business with Nissan North America in 2001, things went downhill.

Former Vice President of Collins Signs, David Hughs said, "We entered into that contract with Nissan expecting to go through with it and we found out they never intended to do so."

According to lawyers, Collins Signs was forced to file bankruptcy in 2002.

Harry Hall, II, a lawyer for Bankruptcy Trustee said, “They terminated the contract and wouldn’t pay Collins for the $3.5 million dollars worth of installations they had already completed."

Cummings Signs on Napier Field Road bought Collins' assets five years ago.

"In 2002, Collins Signs began laying off employees in the fall, and by the time the sale took place, they were down to 500 employees or less," Hall continued.

Several local businesses, including Personnel Resources, C & C Fastners and Breckin Wholesale were effected by the collapse of Collins Signs because they were major vendors.

Thursday’s verdict could lead to some repayment.

"The money will go to pay creditors when it’s recovered by Nissan,” Hall concluded. “It caused Collins Signs to file chapter 11 bankruptcy converted to a ch.7."

"It’s going to vindicate a lot of employees who lived through the paranoia,” Hughs added. “It wasn't just their imagination."

As of now, it is uncertain which creditors will receive payments.

The bankruptcy trustee has to take the money and disburse it according to bankruptcy court rules.

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  • by Wade Location: Cincinnati on May 21, 2008 at 10:37 AM
    Too bad that several Philadelphia and Atlantic City sign companies couldn't sue Donald Trump. He put a couple out of business when he built his Taj Mahal casino back in 1989 and only paid them 10 cents on the dollar for the sigange.
  • by Leah Location: malvern on May 10, 2008 at 08:01 PM
    Whatever happened to the ole' fashion rule-pay with cash "up front" before the order is placed or pay when the order is placed?! Would save great many people to stay out of bankruptcy court and prevent businesses in addition to people of America getting into great financial debts!
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