Cheapo owner
files Chapter 11

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Star-Bulletin staff

Cheapo Music & Books, operator of three stores in Honolulu, has filed for Chapter 11 reorganization bankruptcy after losing a lawsuit in state Circuit Court last month.

Archipelago Music Corp., which does business as Cheapo, owes $100,000 to the landlord of its music store at the Pearl Kai Shopping Center in Aiea, which sued Archipelago and won a default judgment.

Filing for Chapter 11 allows Cheapo to continue to run the business while reshuffling its finances. The company estimates it owes less than $500,000 to various creditors.

Cheapo bought the former Jelly's stores in 1999. Cheapo is based at Puck's Alley at University Avenue, where it has a music store and a book store.