InkStop, Inc. was an office supply retailer founded in 2005 and most recently headquartered in Warrensville Heights, Ohio. On October 1, 2009, operations were stopped until further notice by the Board of Directors. On November 5, 2009, InkStop filed for Chapter 7 bankruptcy.
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History
Beginnings
In 2004, InkStop founder and CEO, Dirk Kettlewell, was Vice President of Technology at OfficeMax, but decided to leave based on the impending move of the company headquarters to Chicago by Boise Cascade, which acquired OfficeMax in 2003. He took with him his eventual wife, Dawn (Callahan) Kettlewell, who was Vice President of Merchandising at OfficeMax, and several others to create InkStop, which was to be focused on profiting from mainly ink and toner sales in smaller stores giving convenience and better customer service than the competition.
Fast growth
After its first location opened up in Independence, Ohio in 2006, InkStop grew to operate as many as 162 stores in 14 states. In April 2009, RBC Global Capital Markets ranked the company one of the 30 fastest-growing retailers nationwide.
Abrupt end
On October 1, 2009, after calls were made and a memo was sent out at the end of the day of business, all operations were ceased immediately by the Board of Directors, which includes former NFL quarterback Boomer Esiason. The employees were not given their last two paychecks following this action.
On November 5, 2009, InkStop filed for Chapter 7 bankruptcy. The filing states the company owes $48.3 million to more than a 1,000 creditors. The company also owes $1.1 million to its former employees for wages not paid for the last 3 weeks worked as well as vacation pay and unpaid expenses.
At the December 5, 2009 bankruptcy hearing, it was learned that several investors were paid nearly $5.3 million to its directors and senior managers, including "$109,268 to Norman "Boomer" Esiason."
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Legal actions
Warren et al. v. Inkstop, Inc. et al.
On October 4, 2009, a class action suit was filed in Ohio Northern District Court against InkStop as well as Dirk and Dawn Kettlewell for unpaid wages and benefits.
DeGreen et al. v. Kettlewell et al.
On October 20, 2009, Keith DeGreen, a professional investment adviser, his wife, Lynn DeGreen, and their DeGreen Family Revocable Living Trust, filed a lawsuit against Dirk and Dawn Kettlewell, as well as the officers and Board of Directors of InkStop for not telling them that the company did not have enough money to pay its debts, landlords or employees. According to the complaint, only three weeks before operations ceased, Mr. Kettlewell told Mr. DeGreen that the company was financially sound, but they needed his $250,000 for the upcoming holiday inventory. Once stores closed, Mr. DeGreen asked for his money back and was told that would not be possible. Mr. DeGreen is suing for $500,000.
Source of the article : Wikipedia
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