Coupon Firm Files for Liquidation

A Costa Mesa business that handled coupon redemption chores for more than 1,000 markets and retail stores nationwide has filed a Chapter 7 bankruptcy liquidation petition.

Coupon Clearing Service, which also operated as Coupon Clearing Service of Newport Beach, listed assets of $14.8 million and liabilities of $22.5 million. The petition was filed in federal bankruptcy court here Wednesday.

In a Chapter 7 proceeding, a firm’s assets are usually sold. Any proceeds after administration expenses are used to repay creditors at least a portion of what they are owed. When the company’s assets are exhausted, its debts are considered to have been eliminated.

Coupon Clearing Service officials could not be reached for comment Thursday and the company’s attorney did not respond to a request for information about the case.

According to the bankruptcy petition, Coupon Clearing Service has more than 1,600 creditors, mainly small markets and liquor stores.

The largest single creditor listed, however, is the K mart discount retail chain, which is owed $4 million.