Several news organizations are reporting that Brooke Corp. and Brooke Capital Corp. have filed for Chapter 11 in Bankruptcy Court in Kansas as of Tuesday, Oct. 28. The company had lawsuits pending, including the Bank of New York Mellon and one bank in Illinois. Over 200 agency/owners had also filed suit in several states against the franchise.
Brooke Corp. at one time had as many as 900 franchise offices, the number at this point is around 200.
The court had appointed a special master, Albert Reiderer, rather than a receiver to handle the franchisor's financial difficulties. Reiderer has overseen the Brooke Corp. since mid-September and most recently disclosed that two Kansas businessmen were interested in purchasing the assets of the franchise. Whether the bankruptcy filing will encourage or discourage the perspective buyers remains to be seen. Reiderer was unavailable for comment when Insurance Journal contacted his office. The special master had not mentioned the bankruptcy filing in an interview on Tuesday with Insurance Journal.
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