Office Concepts survives bankruptcy, plans new location

by Paul Schreiber

SBJ Reporter

pschreiber@sbj.net

Office Concepts has its sights set on a new location. The company, which is a Kyocera dealership, sells and leases digital copiers, printers and fax machines out of 5,250 square feet at 1701 W. Sunshine in the Elfindale Center.

Office Concepts filed for Chapter 11 bankruptcy Nov. 5, 2002. The reorganization plan was confirmed by the bankruptcy court on April 7, 2003, said David Schroeder, the lawyer handling the company's case.

The reorganization plan allowed Office Concepts "to restructure its obligations with its creditors," Schroeder said. "Basically, the company is current and is fulfilling its obligations under the court-approved plan ... The court entered a final decree and closed the case July 15, 2003.

Since then, the company has refocused its energies with an eye to expansion, owner Steve Moore said, particularly in the area of sales staff. "I could bring on two more right now, if I had them," he added.

"We have purchased property that we will be closing on, on or before the 23rd of this month," with a 6,500 square-foot building to begin within about 90 days, Moore said. Of that total space, 1,250 square feet will be leaseable, he said.

Bob Murray, president of RB Murray Co., the firm handling the transaction, said lot No. 3 due east behind Dollar General at 1726 S. Kansas Expwy. will be Office Concepts' new location. The seller is B Squared Properties LLC, he said.

The price of the land is roughly $150,000 and the building will be about $450,000, Moore said, who declined to name the local lender. Architect for the project will be Bill Derrington. The general contractor has not been finalized.

Office Concepts has been at its Elfindale location for about 14 years and leases from S & L Commercial for about $5,000 a month, Moore said. Office Concepts subleases 800 square feet to Edward Jones, he added.

Moore said that until the four-year divorce case between him and his ex-wife, Martha, was settled in March 2003 "there was no real inducement here for everybody to be profitable. Divorce did not take the company; I am the sole owner." The divorce case was finalized in March 2003, he said.

Projecting 2004 revenues, Moore said, "we're going to be real close to $3.3 million" or about $275,000 a month. The company employs 21, with 11 in service, six in sales and four in administrative capacities.

According to court filings at the time of Office Concepts' bankruptcy, it had a total debt of $1,114,432. Of this figure, $845,922 was in secured claims. That debt is now less than $600,000, Moore said.

Chief among Office Concepts' debtors was Great Southern Bank, Moore said. "In no small part, we are where we are today because of the way that Great Southern has worked with us." The bank had $720,841 in debt against Moore's company, which included a promissory note, a U.S. Small Business Administration loan and commercial security agreement.

The two other firms holding secured debt against Office Concepts were Kyocera Mita America Inc. at $70,841 and General Motors Acceptance Corporation at $54,345. Both debts have been eliminated, Moore said.

An amount of $24,915 in unsecured priority claims has been either eliminated or negotiated through quarterly payments through the bankruptcy court, Moore said.

The $243,915 in unsecured nonpriority claims against the company have been reduced to under $100,000, Moore said.