Saffron Restaurants reservation Accounting firm goes bankrupt after $4.7 million takeover

Accounting firm goes bankrupt after $4.7 million takeover

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Apex Littleton Office Google

Apex Accounting and Tax offices at 7800 S. Elati St. in Littleton (Google)

A year after acquiring a competitor for $4.7 million, a local accounting firm is bankrupt.

Apex accounting and taxes in Littleton filed for Chapter 11 bankruptcy on May 3. The company has $4.3 million in debt and only $180,000 in assets, according to the bankruptcy filing.

Apex was incorporated in 2021, according to state records. Last year, it announced it acquired Phases Accounting & Tax, a 25-year-old Colorado Springs firm.

“We are excited to welcome Phases to the Apex family,” said Nancy Spelgatti of Apex in a press release in March 2023. “… With this partnership, we can offer our clients a broader range of services and help them achieve their unique goals. financial objectives.”

That press release and Apex’s website identify Spelgatti as the owner of Apex. The company’s bankruptcy papers list Hong and Lew Spelgatti as the company’s owners. Nancy Spelgatti and Apex did not respond to requests to discuss the bankruptcy this week.

Debby Miller, the founder and owner of Phases Accounting, still owes $104,000, according to Apex bankruptcy papers. The transfer of Phases’ assets to Apex was completed in February and was valued at $4.7 million, Apex said.

Apex’s $4.3 million debt load is more than its revenues in 2022 ($435,000), 2023 ($2.2 million) and year-to-date 2024 ($600,000) combined. Nearly all of that debt, $3.8 million, is held by Live Oak Bank, a small lender in North Carolina that has a lien on all of Apex’s assets.

Apex is represented by attorney Keri Riley with Kutner Brinen Dickey Riley in Denver.