Last summer’s bankruptcy filing highlights economic woes in Memphis, Texas
By: Logan Neal - logannea@ttu.edu
The Total Alloy Foundry, a small manufacturing company out of Memphis, Texas, filed for Chapter 7 bankruptcy protection in late July.
Though it only employed about 10 people, the company had been a staple in Memphis, a muscular manufacturer that was able to melt metal alloy and reshape it to produce heavy-duty mechanical parts.
But Total Alloy began to accumulate significant debts over the last few years, according to filing documents, and has now become a symbol of the economic problems plaguing Memphis as a whole.
“The Chamber is doing an amazing job, but Memphis is not growing,” said Memphis Alderman Leslie Ivy. “Things being done are keeping residents entertained and active, but everyone is saying we need housing and jobs.”
Chapter 7 bankruptcy documents confirm that Total Allow will completely liquidate its assets to pay off creditors, and all claims are expected to be filed by March, according to city secretary Cindy Woodard.
The company’s initial filing listed just over $2 million in assets – divided between its factory, worth an estimated $667,000, and machinery, worth $1.34 million..
It said creditors were owed nearly $1.7 million.
More than a dozen of its creditors are based in West Texas. Collectively, they are owed nearly $160,000.
West Texas Creditors and the amount owed
It is not clear why the company ran into trouble. Officials did not return calls seeking comment.
Ivy said that although the employment base wasn't significant, Total Alloy was an important business for the city of Memphis.
“I think they employed like 10 people or so, but I mean for Memphis 10 is a lot,” Ivy said
Meanwhile, Ivy shared expressed concerns about how college-age kids in Memphis keep moving away.
“The young people either leave and go to school or places where there's work,” Ivy said.. “The younger people just aren't that interested.”
Though the city has allotted over 3% of its total budget to the Economic Development Tax, there has remained a consistent downward trend in population from 2,294 residents in 2010 to 2,035 today, according to the Census Bureau.
