A high-end furniture and fixture distributor based in Boardman is being sued for more than $6 million by a lender for alleged breach of contract.

Ampla, a New York-headquartered private lender serving the e-commerce and consumer brands industry, filed a complaint in U.S. District Court on Tuesday claiming that Burke Décor has defaulted on a $8,217,028 credit agreement from 2022.

The complaint also alleges that Burke made fraudulent misrepresentations about its Growth Line of Credit, which Ampla agreed to make the loan to Burke in exchange for a right to collect a percentage of Burke’s receivables, a security interest in substantially all of Burke’s assets, a right to receive accurate financial reporting, and the right to receivership.

Ampla claims Burke defaulted by transferring funds to unauthorized entities, using funds for unauthorized purposes, and failing to report and deposit revenue, thus reducing Ampla’s recovery of the percentage of receivables Ampla says it is due.

According to the complaint, Burke Decor currently owes Ampla more than $6.4 million, plus interest which continues to accrue.

As of Wednesday, Burke had not filed an answer to the complaint, nor responded to a request from 21 News for comment.

On March 27, Burke Décor announced that it had hired Investment Bankers and Restructuring Advisors to help it raise outside capital, reduce debt, and restructure operations to improve profitability.

"The past year has been complicated for retailers nationwide, especially digital,” said company CEO Erin Burke in a news release.  “In our case, higher interest rates, a tighter economy, as well as systems changes and updates by our e-commerce partners and advertising platforms (Google, Meta) that were beyond our control have presented significant challenges.”

Erin Burke of Hubbard is also named as a defendant in the complaint.