Pawn America Minnesota filed for chapter 11 protection this week, succumbing to surging competition from online competitors and other factors shaking up the retail sector, the Minneapolis Star Tribune reported today. The company — which operates 23 pawnshops in Minnesota, Wisconsin and the Dakotas — reported on Wednesday that it owes between $10 million and $50 million to fewer than 1,000 creditors. Pawn America President and founder Brad Rixmann, in a message to employees, said he plans to reorganize and emerge from bankruptcy stronger. The retail chain does not yet have a restructuring plan in place, so it has no details on what stores might close or if staff will be cut, the company said. The company and its affiliated businesses, which started with a single store, now have about 450 employees who buy and sell used jewelry, electronics, computers, household items, sporting goods and other merchandise.
