Oahu bagel
business bankrupt

By Peter Wagner
Star-Bulletin

Kimo Bagelman's has closed its two remaining stores and filed for bankruptcy, a move that stalls eviction at the company's Kaneohe location.

Bagelman's, a limited partnership operating as Bagelman's Akahi, last month closed two of its four stores, at 711 Queen St. and Ala Moana Center. The remaining stores, at Bishop Square downtown and Windward City Shopping Center, were shut Wednesday, shortly before the Chapter 7 bankruptcy filing.

The Windward landlord yesterday was in District Court seeking possession of the property. But under federal bankruptcy law, the company's assets are now under the control of a trustee.

Jon-Eric Greene, president of Bagel Management Inc., the general partner in Bagelman's Akahi, could not be reached for comment. Richard Swartz, a former partner, left the company early this year.

The company, operating since 1997, has about 30 employees.

James Evers, Bagelman's bankruptcy attorney, said several potential buyers were negotiating for one or more of the Bagelman's stores before the bankruptcy filing.

He said Bagelman's ran into financial difficulty and could not keep up with lease rents and bills.

A Chapter 7 bankruptcy, commonly used in personal bankruptcies, liquidates a debtor's assets and forgives remaining debts. Bagelman's initial filing shows assets of $100,000 to $500,000 and debts of $500,000 to $1 million. The filing lists 93 creditors.