By Bob Negele
Rozanna and Richard Mulhollen, the owners of the Quality Market in Medford, Oregon, have recently filed for Chapter 11 bankruptcy, listing debts of nearly $4.2 million. This type of bankruptcy filing is most often used for businesses, according to the Department of Justice. Consumers typically file Chapter 7 or Chapter 13 bankruptcy.
According to the Mail Tribune, the iconic market owned by the two debtors built its reputation on its meat counter and customer service, but like its owners, it has been hit with financial troubles in recent months.
One of the Mulhollens' creditors is the Sterling Savings Bank, which is owed $1.1 million, according to court records. An attorney representing the bank said that the last payment the Mulhollens made on the building that houses the Quality Market was in 2008, and that the bank will pursue relief from the automatic stay imposed by their bankruptcy filing in order to initiate foreclosure proceedings.
"Obviously, the bank just wants to get paid, but it doesn't appear from the bankruptcy loan file that the debtors have the ability to do that any time soon," the attorney said.