The Money Tree Inc., a Georgia-based provider of small consumer loans, and several of its subsidiaries have filed for bankruptcy protection, citing the economy and customers’ inability to repay loans.
The Bainbridge-based lender, which filed for Chapter 11 protection in Alabama on Friday, said it would restructure its business and close half of its 92 locations across the Southeast.
The company has 28 locations in Georgia, including branches in Buford, Conyers and Forest Park, according to its website.
The Money Tree was founded in 1987 and expanded into Alabama, Florida and Louisiana in the 1990s. Hurricane Katrina and the economic downturn that began in 2007 were significant setbacks for the lender, the company said in its bankruptcy filings.
The company started a corporate restructuring plan outside of bankruptcy court back in October, with plans to merge offices and reduce overhead.
Bradley Bellville, the company’s president, said in a news release that the filing was made with “great regret.”
“However, this filing allows The Money Tree to enhance its short-term liquidity while we confront this historically difficult environment for our business,” he said.
Bellville did not immediately return a call requesting comment.
The filing listed $71 million in debt as of November.
The Money Tree’s Best Buy Autos subsidiary is not a part of the bankruptcy filing, the company said.
