November 5, 2012
By: John Clark
Cash4Gold, a company best known for its commercial featuring MC Hammer during the 2009 Super Bowl, is filing for bankruptcy help, according to a report this week from Fortune magazine.
The company, which is a metal refinery, though you probably wouldn’t know it from its commercials, will likely be sold for about $440,000 to Direct Holdings America, a conglomerate that also owns Time-Life.
Sources note that the sale still needs to be approved by the bankruptcy court, but that the deal is likely to go through without any complaints from creditors. This bankruptcy filing is particularly noteworthy because Cash4Gold, which is presently owned by Green Bullion Financial Services, was a booming company as recently as three years ago.
Florida-based Green Bullion recently gathered $40 million in financing from several venerable venture capital firms that had a lot of faith in the company’s business plan.
This cash infusion led to a period of lavish spending by Cash4Gold, including a $2.4 million commercial during the Super Bowl that featured a rapping MC Hammer.
The venture capital firms, however, refused to offer more financing when Cash4Gold began experiencing financial problems. One of the company’s business partners launched a lawsuit against one of the backers alleging a breach of contract, but this claim was eventually settled out of court.
Cash4Gold reportedly shut down its refining operations and closed its corporate headquarters. Now, the company will soon be in the hands of Direct Holdings America, which is described as a "direct marketer of music and video projects."
What this company plans to do with a metal refinery is anyone’s guess. Another company that had an interest in buying Cash4Gold was the Massachusetts-based metal refinery, CashForGoldUSA. While this would have been a more natural transition, the company apparently lost the bidding war to Direct Holdings America.
Sources note that Cash4Gold’s biggest creditor was a marketing agency that helped produce the infamous Super Bowl commercial. The company reportedly owes the agency more than $800,000.
PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.
FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.
If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.
By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.