CORRECTION: A previous version of this story stated that Burke Decor, LLC had filed for bankruptcy. The filing in question is actually for the company's founder, Erin Elizabeth Burke. We have no information to indicate the company has filed bankruptcy. 

 

The founder of a  high-end furniture and fixture distributor based in Boardman that is being sued for more than $6 million by a lender for alleged breach of contract has filed for bankruptcy.

Burke Decor revealed in a court filing that it's founder, Erin Elizabeth Burke,  is pursuing a reorganization under Chapter 11 filed in Bankruptcy Court in Los Angeles.

The notification was made to Ampla, a New York-headquartered private lender serving the e-commerce and consumer brands industry, that alleges Burke Décor defaulted on a $8,217,028 credit agreement from 2022.

The filing in court argues that the bankruptcy filing should stay Ampla's legal action for now.

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.

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

Burke Decor CEO Erin Burke previously blamed higher interest rates and a tight economy for the company's financial challenges.