Carter, a car seat manufacturer based in Ohio, has announced it is now filing for Chapter 11 bankruptcy protection for its car seat business.
According to a press release from the company, Carter was founded in 2014 and had previously been a car rental company.
Carter said in a press conference this week that the bankruptcy filing will “save our business, and its investors, from the stress of mounting costs, litigation, and losses”.
According to Carter’s bankruptcy filing, it will also eliminate $60 million in “costs and expenses related to its automotive manufacturing activities”.
However, the filing has not yet been fully filed with the bankruptcy court, which is expected to happen in early 2018.
“Carter’s automotive manufacturing business has been plagued by significant costs, labor, and other operational expenses, which have been exacerbated by the inability of the company to access and secure financing,” said a press statement from Carter.
“These challenges, combined with the uncertainty surrounding the bankruptcy proceedings, have forced Carter to delay and delay, as it seeks to continue to meet its obligations to its customers and employees.”
Carter is also asking for an amount equal to 30% of the net sales of its car seats.
The company is also seeking a 30% reduction in the amount it is paying to creditors.
Carters financial woes are not the first time a company has had trouble accessing bankruptcy protection.
A company called Carpet Warehouse filed for Chapter 9 bankruptcy protection in February 2017, and it was ultimately allowed to file for Chapter 13 bankruptcy protection by the US bankruptcy court in November of that year.