UPDATED: SLS International files bankruptcy, plans to sell assets

Ozark-based SLS International Inc. has filed Chapter 11 bankruptcy, with intent to sell all of its assets and file Chapter 7.

The speaker-maker filed a voluntary petition for reorganization relief in U.S. Bankruptcy Court for the District of Delaware on Tuesday, according to the filing.

SLS continues to operate as a debtor in possession and will sell substantially all of its assets within 60 days. The company then will convert its bankruptcy case to Chapter 7, according to the filing.

The filing shows SLS owes between 100 and 199 creditors, including Best Buy Co., Sherwood America and Top Loyal Electronics Co. The company has $5.7 million in estimated debts and $2.7 million in assets.

Owner John Gott took SLS public 2001 and grew the company quickly, earning it a spot among SBJ's Dynamic Dozen - the area's 12 fastest-growing area companies - in 2006. But a failed attempt to enter the retail market sent company stock tumbling, and it was delisted from the American Stock Exchange later that year.

Gott released a statement Thursday afternoon, saying that the debtor-in-possession financing process would improve SLS' balance sheet and liquidity.

"In today's economic environment, we are pleased to have achieved such strong support for a sale of the business that is beneficial to our employees, customers and vendors by dramatically improving our balance sheet, eliminating some secured debt obligations and enabling continued investment in our future growth," Gott said in the statement.

SLS has 20 employees and 169 shares of common stock.