G.M.S. Home Solutions of Canton, Ohio submitted a voluntary petition for Chapter 7 bankruptcy on March 16, 2021.
According to the US Bankruptcy Court for the Northern District of Ohio, G.M.S. Home Solutions is faced with over $120,000 in outstanding debt to eight creditors — $88,000 to at least five fellow material suppliers.
G.M.S. Home Solutions lists in their bankruptcy petition that they have earned $0 in gross revenue since December 1, 2019.
At the time of their filing, G.M.S. Home Solutions reported having:
- $123,313 in total liabilities
- $43,000 in total assets
- $0 in total checking
- $0 in accounts receivable
A Chapter 7 bankruptcy requires an entity to liquidate, which is the process of selling off the debtor’s nonexempt property (property a business owns that is no longer protected upon filing for bankruptcy) and distributing those proceeds to creditors.
The Ohio Secretary of State lists G.M.S Solutions’ current work status as “active” after originally registering as an LLC in December of 2015.
Creditors named in bankruptcy filings are listed with either secured or unsecured claims. A creditor with a secured claim is typically paid out first. Any remaining proceeds can be distributed to unsecured creditors after the secured claims have been paid. Unsecured claims may also be listed as priority and nonpriority.
In the case of G.M.S. Home Solutions, the material supplier names no secured creditors in their filing, but does list three creditors with priority unsecured claims owed a combined $35,313.
According to the bankruptcy petition, G.M.S. Home Solutions owes the IRS $30,596 for 2019 taxes. The material supplier also lists the City of Canton, Ohio as a priority unsecured creditor owed $2,596 for 2019 taxes and the State of Ohio, which is owed $2,121 for 2019 taxes.
The remaining five creditors are all material suppliers owed a combined $88,000 with nonpriority unsecured claims:
- Alside – $25,000
- Carter Lumber – $25,000
- Modern Builders Supply – $20,000
- Tower Industries – $6,000
- Willoughby Supply – $12,000
All five nonpriority unsecured claims are listed as trade debts that incurred in 2016.
G.M.S. faces multiple poor reviews, complaints
According to the Better Business Bureau’s profile page for G.M.S. Home Solutions, the supplier is faced with nine complaints — coupled with poor reviews.
The latest complaint dates back to March 10, 2020 concerning problems with products or services. The complaint states:
“I paid 1/2 down on a siding job in December of 2019 for a job to be started in Feb of 2020. I can’t get in contact with anyone associated with the company. The phone is off the hook and no one is at the office.”
A reviewer from August of 2019 left a one-star review of the supplier on the Better Business Bureau’s profile page of G.M.S. Solutions, writing, “Communication was terrible, performance was almost as bad.”
With only two reviews posted, Yelp’s review page of G.M.S. Home Solutions paints a similar picture. A Yelp review from September of 2019 states the supplier was “totally uncommunicative and “never gave me a schedule, only a window of two weeks, and I had to turn away other trades due to their negligence.”