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Colleen's Consignment bankruptcy forces customers to file claims

Posted at 8:24 PM, Feb 28, 2019
and last updated 2019-02-28 23:51:56-05

LAS VEGAS (KTNV) — Customers who entrusted furniture to Colleen’s Consignment Stores were outraged during a creditors meeting at the Foley Federal building on Thursday.

Twenty people in attendance were told they might not get their money back but must submit a proof of claim form that proves ownership of the furniture.

Colleen Aiken, the owner of Colleen's Consignment stores, along with her attorney James Leavitt answered questions of frustrated customers.

RELATED: Closure of Colleen's Classic Consignment stores leaves employees, customers hanging

Everyone present questioned Aiken on why "she took people’s stuff” or "if she was already contemplating filing bankruptcy" when taking in furniture.

13 Action News was also in attendance, but cameras or cellphones were not allowed in the meeting.

Rocky Parks was devastated when he learned in what direction the case is moving - he runs a furniture staging business.

Parks said he did business with Aiken for nearly 25 years.

"To come out to my house with Colleen's trucks and pick up $18,000 worth of goods, and ten days later file for bankruptcy?" said Parks.

He also turned over his furniture ten days before the company closed.

"Now, I’m at the mercy of bankruptcy? I don't think that's fair," Parks said.

Leavitt encouraged customers to get their attorney for the bankruptcy proceeding.

During the meeting, Aiken claimed she informed some customers but also admitted she could have called more of them.

Tim Asher, another customer, told 13 Action News he never got a phone call.

"None of the consigners were notified or called, she said she tried calling us, I call that b[s], you know what," said Asher.

13 Action News tried talking to Aiken after the meeting, but she walked away and refused to answer any questions.

RELATED: Colleen's Classic Consignment bankruptcy frustrates customers

Aiken’s attorney did not give an answer on why furniture is not being returned to the owners but did talk about their plan.

"I do empathize with creditors in the estate, but we are doing what we are doing what we can equitably pay everybody on a prorated basis," said Leavitt.

Colleen’s Consignment stores won’t be returning items that were not sold. Furniture will be auctioned with the money then paying some of the consignees.

The deadline for the proof of claim form is March 6.

According to Leavitt, a website was set up for creditors (customers) to gain additional information about the case.