Widow of former CEO for ethnic hair care manufacturer J.M. Products' declares Chapter 7 bankruptcy after being unable to pay back US$5M loan; company collapsed in 2009 after defaulting on US$9M loan made in 2007
LITTLE ROCK, Arkansas
December 22, 2011
– The widow of the founder of an ethnic hair care products maker has declared Chapter 7 bankruptcy after being unable to cover a $5 million loan to the company that she personally guaranteed.
Arkansas Business reported Wednesday that Thelma Joshua of Maumelle reported $768,000 in assets and $5.74 million in debts.
Joshua, who was CEO of J.M. Products, had guaranteed a $5 million loan made by Charlotte, N.C.-based Bank of America.
The company collapsed in 2009 after defaulting on a $9 million loan made in 2007.
The company was unable to reorganize and emerge from bankruptcy and the firm was liquidated.
Ernest Joshua Sr., who died in 2005, founded J.M. Products in the early 1970s and was later named to the University of Arkansas Business Hall of Fame.
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