On Wednesday, the clerk of the court said that “sufficient assets may become available for distribution to creditors” and that creditors must file proofs of claim by Feb. 8 with the court.
Peach Entertainment on Tuesday disclosed it tapped Los Angeles attorney Nancy Hoffmeier Zamora as its Chapter 7 trustee.
Van Nuys, Calif.-based Peach, which filed for Chapter 7 in late September, operated Peach DVD, PeachDVD.com, Red Static, Late Night and Red Dragon Releasing.
Peach, according to the Chapter 7 filing, was seeing dwindling DVD sales, which amounted to only $290,000 this year, after banner years in 2007 and 2008, when Peach saw revenue climb to $2.4 million and $1.8 million, respectively.
In the Chapter 7 filing, Peach said that it was $1.8 million in debt and had $466,000 worth of assets, including video masters worth $114,000 and $203,000 of inventory.
Its largest creditor is CEO David James, who stated he lent the company more than $1.7 million in recent years.
Other creditors include Ingram Entertainment, L&M Optical Disc West, Orbitland Interactive and CAV Distribution Corp., among others.
The company was co-founded by Jim Monroe and James, who helped Steven Hirsch launch Vivid in 1984. Today, James continues as a Vivid co-CEO.