Posted on: Tuesday, May 27, 2003

American Movers auctions unclaimed items

By Andrew Gomes
Advertiser Staff Writer

More than 1,000 boxes of unclaimed storage items at American Movers Inc. were auctioned Saturday as part of the company's bankruptcy liquidation.

The firm, one of Hawai'i's largest and oldest moving companies, filed for Chapter 11 reorganization last October but earlier this year decided to wind down operations and liquidate assets after continued losses of about $576,000 from mid-October through March.

"We just couldn't make money," said Art Heath, company president. A cash-flow crunch following last year's West Coast dock shutdown prompted the bankruptcy filing, but Heath said prohibitive insurance costs after two high-claim years for the company prevented any recovery.

American Movers recently sold its records storage and transportable self-storage divisions, and reduced its number of employees from 89 to 11 this year. Remaining operations will cease May 30.

Other assets to be sold by McClain Auctions are vehicles, machinery and furniture to raise proceeds to largely pay creditor City Bank, which had about $580,000 in secured claims.

American Movers was founded 30 years ago as A&P Shipping to move automobiles and pets between Hawai'i and the Mainland. The company later expanded into the household goods moving and storage business.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.