Los Angeles County - News from Dec. 5, 1994

DAK Industries Liquidation Ruling Due: A hearing is being held in federal bankruptcy court in Los Angeles today to consider Tokai Bank’s request to foreclose and liquidate the inventory of the consumer electronics catalogue marketer. DAK, based in Canoga Park, has been operating under Chapter 11 bankruptcy protection since June, 1992. Faced with continuing losses and a lack of cash to continue operating, DAK closed its doors on Nov. 23. Tokai, its largest secured creditor, asked the court last Wednesday to approve the liquidation. Once a thriving firm with a loyal following of “DAKonians,” DAK’s sales soared to $236 million in the year ended in June, 1991. But sales have since fallen to a fraction of that amount, and results from a recent mailing were said to be disappointing.