Craig Electronics closes

Television Digest with Consumer Electronics, Jan 12, 1998

Craig, which battled throughout 1997 to stay afloat after being forced to restate earnings and later seek bankruptcy protection (TVD Aug 11 p15), is likely to convert Ch. 11 bankruptcy to Ch. 7 liquidation. Craig listed $24.1 million liabilities and $21.7 million assets.

Top unsecured creditor is Nationsbank Commercial Corp. at $1.2 million, but death blow was failure to obtain new credit agreement to replace Dire that expired in Aug. with syndicate of banks led by Bankers Trust Commercial Corp.

Craig fired top executives including Pres. Richard Berger in Sept. following disclosure of SEC investigation and suffered setbacks earlier in year when it was forced to switch product reeonditioning joint ventures in China after failing to gain govt. approvals. In 1996, it had dropped video products, including VCRs that once were low-end staple to focus on audio products including personal CD players and boomboxes.