Auction House Bankruptcy Filing Is Latest of McNall’s Problems
Superior Stamp & Coin Co., Inc., an international auction house of which Bruce McNall was majority owner, became the latest enterprise to fail the Kings’ president when it filed for bankruptcy in federal court last week.
The action came as the firm’s debts exceeded assets by about $9 million.
Andrew Goodman, an Encino tax attorney representing Superior, said the company’s failure was not a result of McNall’s financial and legal problems.
McNall was sole owner of the Kings until May, when he sold 72% of the franchise for $60 million as part of a plan to pay off a $92-million business loan. Shortly thereafter, he filed for bankruptcy. He recently reached a plea agreement in a federal investigation into bank fraud involving his chief holding company, McNall Sports and Entertainment.
"(Superior has) suffered operating losses due to downturn in the collectible business,” Goodman said Tuesday.
Other factors in the demise of the 64-year old Beverly Hills company that handled rare stamps, coins and other collectibles were its debt load and mounting lawsuits.
“It’s like every other industry in this economy, it’s just not what it used to be,” Goodman said.
Superior also filed a motion seeking authority to transfer consignment and auction portions of its business to A-Mark Auction Galleries. The firm is seeking to sell its assets to A-Mark. The motion will be heard Sept. 20 in U.S. Bankruptcy Court in Los Angeles.