Happy Tax Day & Hacketts/Scozzafava Go Down in Burning Flames!!!

Folks, we wish we could blame this one on taxes but we just can't do it. Unfortunately all fingers point to an all too familiar face in the North Country. Hacketts/Seaway Valley/Wisebuys folks were delinquent to several creditors on large sums of $$$. This is one for the history books.

In other news, the nationwide tea party scheduled for today went off with great success according to all accounts both local and national.

Hacketts facing bankruptcy
By BRIAN KELLY
TIMES STAFF WRITER
WEDNESDAY, APRIL 15, 2009

Several creditors of Hacketts department stores have moved to force the company into involuntary bankruptcy.

Six creditors filed an involuntary petition Monday in U.S. Bankruptcy Court, Utica, seeking the Chapter 7 bankruptcy of Patrick Hackett Hardware Co., Ogdensburg. The creditors claim they are owed a combined $1.6 million.

The creditors' action seeks to have the company's assets liquidated, with distribution of the proceeds going to the creditors.

Hacketts operates nine stores in the north country. A 10th store in Pulaski closed March 28 and the company announced April 7 that it plans to close its Watertown store at 144 Eastern Blvd. by the first week of June. That store is having a going-out-of-business sale.

According to court documents, the creditors forcing the bankruptcy are:

— Columbia Sportswear USA, Portland, Ore., which claims

it is owed $500,707.

— Woolrich Inc., Woolrich, Pa., which claims $260,289.

— The North Face — VF Outdoor Inc., Appleton, Wis., which claims $657,307.

— Skechers USA Inc., Manhattan Beach, Calif., which claims $27,000.

— K-2 Sports, Seattle, Wash., which claims $36,200.

— Deckers Outdoor Corp., Goleta, Calif., which claims $74,477.

Jay R. Indyke, New York City, an attorney representing the creditors in the action, could not be reached for comment Tuesday. Thomas W. Scozzafava, chief executive officer of Seaway Valley Capital Corp., Gouverneur, which purchased Hacketts in November 2007, failed to return several calls seeking comment.

In March, Hacketts's then-CEO, Norman Garrelts, told the Times that Wells Fargo Bank was requiring the company to repay a $5 million line of credit secured in January 2008. He said at the time that Hacketts had paid back $3 million over the previous two months, significantly reducing the company's cash flow. He declined comment Tuesday as he is no longer serving as CEO.

Hacketts is one of the nation's oldest retailers, with roots dating back to 1830. It was acquired in 2007 by Seaway Valley, a venture capital and leveraged buyout investment company run by Mr. Scozzafava.

Mr. Scozzafava, along with his sister, Assemblywoman Dierdre K. Scozzafava, and Joseph G. LaChausse, had previously formed WiseBuys Stores Inc. to provide stores to serve communities left without access to basic goods when the Ames chain closed all of its stores.

In October 2007, Seaway Valley acquired all of the capital stock of WiseBuys and a month later it acquired all of the capital stock of Hacketts. All WiseBuys stores subsequently were converted to Hacketts stores.

On Dec. 18, Seaway Valley transferred ownership of Patrick Hackett Hardware Co. to The Americas Learning Centers Inc., Boca Raton, Fla. As part of the transaction, Mr. Scozzafava was appointed CEO and chairman of the board of the company, which was renamed Hacketts Stores Inc. On Dec. 22, Mr. Scozzafava announced that Hacketts Stores would be publicly traded as a stand-alone entity. The company's stock symbol became HCKE.

Seaway Valley also owns Alteri Bakery, Sackets Harbor Brewing Co., Sackets Harbor Brew Pub, Good Fello's Brick Oven Pizza and Wine Bar and 1812 Station House, all of which it acquired when it merged with North Country Hospitality Inc. in June.

As part of the merger, Christopher M. Swartz, who was president and CEO of North Country Hospitality, became vice president and chief operating officer of Seaway Valley. He resigned the positions April 3.