FARGO (KFGO) – West Fargo-based Epic Companies has filed for Chapter 11 Bankruptcy.
The filing in federal bankruptcy court says the developer, commercial and residential property management and ownership company has assets of $10 million to $50 million and liabilities also between $10 million and $50 million.
Unsecured creditors listed in the bankruptcy petition include individuals that invested with Epic and companies that are owned money for work. One of the largest unsecured creditors is a Twin Cities-based landscaping company, Otten Brothers. The company says it’s owed more than $1 million. Individual investors include residents from across Minnesota and North Dakota, Florida and other states.
In May, KFGO News first reported that Epic employees were laid off and contractors complained that they had not been paid for work they had already done. Since then, Epic-managed properties in Fargo, West Fargo, Moorhead, Bismarck, Minot, Jamestown and Perham, Minnesota were placed under new management.
Chapter 11, also known as reorganization bankruptcy, is a formal process that allows debtors and creditors to resolve financial issues through a reorganization plan.
The company has been under investigation by the North Dakota Securities Dept. In June, Attorney General Drew Wrigley confirmed that Epic was under investigation calling it “a concerning matter.”
Epic and its representatives have not commented.
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