The company filed under Chapter 11 of the U.S. Bankruptcy Code, which allows a business to reorganize free from creditors lawsuits, if a majority of its creditors approves.
The companys website shows the chain has seven stores in Idaho, including two in Boise and one each in Caldwell and Nampa; five stores in Utah; and one each in Oregon and Nevada.
According to the bankruptcy filing Friday, Honks $1.00s largest unsecured debts were mainly for products. It also owed about $27,000 in sales tax to Utah and about $20,000 in late rent for a space in Utah. The company listed several employees to whom it owes vacation pay.
The bankruptcy filings said Honks assets include no real estate, just property such as store equipment, vehicles and inventory.
Several stores are expected to close. A Honks employee who asked not to be identified said she had been told that six of the chains 14 stores would remain open. That could not be verified immediately. Owners Darrell and Sharolyn Cox and their lawyer did not respond to requests for comment Wednesday.
Some stores are already closed, including the Boise stores on Broadway and in the Cole Village Shopping Center at Cole and Ustick roads where Walmart plans a Neighborhood Market.
Honks has been having trouble for a while. Darrell Cox told the Statesman in 2011 that creeping gas prices were contributing to higher costs. Honks tried offering a weekly discount that tripled business at the stores on Tuesdays, the day of the discount.
Cameron Miller, who oversaw operations for the chain, said then that Honks had almost never raised prices since it started selling items for a dollar 20 years before. So our margins are dwindling, and with fuel costs going up its even more, Miller said.
Audrey Dutton: 377-6448, Twitter: @IDS_Audrey