Harvey Electronics Files Chapter 11

As a result of its failed merger with MyerEmco, Harvey Electronics declared bankruptcy Friday

January 2007 By Stephen Silver

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The New Jersey-based electronics chain Harvey Electronics announced Friday that it had declared Chapter 11 in U.S. Bankruptcy Court. The petition was filed with the Court for the Southern District of New York.

The filing became necessary, the company said, largely because of its failed merger earlier this year with MyerEmco, Inc., which cost Harvey over $1.2 million. After the merger was called off, at MyerEmco’s insistence, in August, the company had a difficult time raising new capital.

Harvey will continue to operate, and expects to emerge from bankruptcy in the spring of next year.

“We regret that Harvey’s best path to reorganization is through the Courts, but despite the other distractions over the past year, our custom installation business remains strong,” said Michael E. Recca, the company’s interim CEO. He added that the move will help Harvey transitiion “from a specialty retailer with a home installation business to a home installation expert with appropriate retail distribution.”

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