By Kyle Olson
Victor Tibaldeo, the entrepreneur behind the Miami music store Victor Pianos & Organs, recently filed for personal bankruptcy under Chapter 11 of the bankruptcy code.
Tibaldeo's music store, which counted among its clients Ray Charles and Itzhak Perlman, filed for bankruptcy last spring, the South Florida Business Journal reports. Annual sales in the store reportedly decreased from more than $600,000 annually to less than $50,000 once the recession started, prompting Tibaldeo to submit a bankruptcy filing for his business.
His recent personal bankruptcy filing has reportedly been submitted to allow him to reorganize his 50-year-old family business, and listed assets and debts ranging from $1 million to $10 million, respectively.
Tibaldeo's bankruptcy attorney said that the business plans to sell off some of its assets and emerge from bankruptcy with a greater focus on internet sales, the news source reports.
Chapter 11 bankruptcy is usually filed for businesses that seek to reorganize their debts. Though consumer filings under Chapter 11 are more rare than filings under Chapter 13 or Chapter 7, it is possible for personal bankruptcy to be filed under Chapter 11 of the bankruptcy code.