Redwood Reliance Sales Co., a 95-year-old Cotati, California, company that sold Peterbilt trucks and Reliance trailers, has shut down after seeking bankruptcy protection earlier this year, according to the Santa Rosa Press Democrat.
“We hoped the economy would turn a bit,” said Dale Ginter, who represented Redwood Reliance in U.S. Bankruptcy Court in Santa Rosa. “The company only needed a little uptick in sales. Not even a small uptick occurred.”
A major creditor and a U.S. bankruptcy trustee blocked a potential sale by saying it would only benefit a few secured creditors.
Redwood Reliance shut down Oct. 16 after Judge Alan Jaroslovsky converted the case from Chapter 11 reorganization to Chapter 7 liquidation, according to the Press Democrat. Reliance Trailer is still operating under Chapter 11 bankruptcy protection.
According to its filing, Reliance Sales has about $10 million in assets and $12 million in liabilities.