The Global Tee Co. LLC, a seller of motivational fitness apparel, has filed for chapter 11 bankruptcy protection, citing the effects of the COVID-19 pandemic on the business, Crain's Grand Rapids reported. The Cascade Township, Mich.-based company, which does business as Fitness Tee Co., filed for bankruptcy protection on May 25 in the U.S. Bankruptcy Court for the Western District of Michigan. Global Tee is pursuing chapter 11 under Subchapter V of the U.S. Bankruptcy Code, which allows small businesses to reorganize while allowing owners to retain a stake in the company. Owned by CEO Scott Sandberg, Global Tee listed nearly $190,000 in assets, which include cash on hand, equipment, and blank and finished clothing inventory, according to court filings. That compares with $1.1 million in liabilities, including nearly $658,000 in unsecured claims. In the filing, the company said it “has fallen behind in payments to its creditors, including taxing authorities” who have filed levies on its bank accounts, “which has interrupted cash flow necessary for continuation of (Global Tee’s) business operations.” Creditors with some of the largest priority unsecured claims include the city of Kentwood ($15,000), the Florida Department of Revenue Taxpayer Services ($16,900), the Indiana Department of Revenue ($6,400), the Michigan Department of Treasury ($6,400), the State of Texas Comptroller of Public Accounts ($10,500) and the Ohio Department of Taxation ($9,700).
