Owston and Martinez Inc., operator of the two Cold Stone Creamery stores on Kauai, has filed for Chapter 7 bankruptcy liquidation.
Named for Richard Owston and his wife Maria Jose Martinez Palazuelos, the company estimated its assets at no more than $50,000 and its liabilities at $100,001 to $500,000, and projects that funds will not likely be available to unsecured creditors, according to the bankruptcy filing.
The company’s sole officer is Owston, according to the filing and state business registration records, which show the company was incorporated in Hawaii in 2006.
Repeated calls to the Lihue and Kapaa stores went unanswered yesterday afternoon.
The initial filing names creditors including Cold Stone Creamery, Scottsdale, Ariz.; franchiser Kahala Corp., also headquartered in Scottsdale; the Loan Recovery Unit at First Hawaiian Bank; the state of Hawaii Department of Taxation; the IRS; and Kauai Island Utility Cooperative, the island’s electric utility. The filing did not list amounts due each creditor.
Cold Stone’s website lists the cost of opening a franchise and operating it for the first three months at between $294,250 and $438,850, including equipment that costs between $91,300 and $111,300.
Owston and Martinez Inc. is represented by Honolulu-based attorney Harrison P. Chung, who indicated in the filing that he also represents Owston and his wife "in certain legal matters" and that they are also contemplating the filing of a personal bankruptcy case.