Bentonville company seeks debt reorganization through Chapter 11 bankruptcy
by July 5, 2023 10:20 am 1,548 views
Bentonville packaging services company Rapid Prototypes (d/b/a Rapid) has filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code, citing lingering business hurdles associated with the COVID-19 pandemic.
According to a June 30 filing with the U.S. Bankruptcy Court for the Western District Court of Arkansas, the company listed a summary of assets at $3.09 million. $6.39 million is the summary of liabilities.
The largest unsecured claim in the bankruptcy case is $959,000 from the U.S. Small Business Administration. SMC Packaging Group of Springfield, Mo. ($318,041) is the second largest.
The company’s filing estimates between 50 and 99 creditors.
Rapid Prototypes builds corrugated packaging and display prototypes for retail suppliers, which are abundant in Northwest Arkansas.
Kyle Jack is Rapid Prototypes’ owner and operator. He offered the following statement to the Northwest Arkansas Business Journal.
“After careful consideration and in an attempt to maintain Rapid’s long history in the community as a partner to so many, we have filed a Chapter 11 bankruptcy to allow for the reorganization of debts incurred in no small part due to the pandemic of 2020-2022. During that time, Rapid expanded into new business opportunities which required aggressive capitalization, and that business has not maintained its earlier success. A key component was the loss of a major account due to a purchase of that business by another entity with its own internal capabilities. This forced Rapid to reduce its staff recently and has also forced this current situation.
“We maintain that we are still here to serve the supplier community for all that we have been known for, prototypes of packaging, displays, POP [point-of-purchase] signage, as well as short-run production, just like we have for over 20 years.”
Jack said the recent round of layoffs left the company with 25 full-time employees, down from 60 one year ago.
Rapid Protypes was founded in 2003. Jack started as part of an investment group and acquired sole ownership in 2007 when he was just 30 years old.