Polished.com

Polished.com Inc. abruptly suspended its operations on February 29, 2024, following a comprehensive strategic review by its Board of Directors, effectively acknowledging an irreversible liquidity crisis  The Company disclosed that it was unable to secure additional financing despite aggressive efforts to negotiate with its lenders, leading to a Notice of Acceleration that precipitated the operational haltRather than pursue a reorganization under Chapter 11, Polished.com opted to file a voluntary petition for Chapter 7 liquidation in the U.S. Bankruptcy Court for the District of Delaware on March 7, 2024 . Disclosure documents revealed an alarming asset‑liability imbalance, with just $46.97 million in assets against $330.54 million in liabilities, underscoring the depth of its insolvency

Operational Suspension:
Polished.com suspended its operations following a comprehensive strategic review that laid bare an irreversible liquidity crisis. 
Chapter 7 Filing:
The Company declared its intention to file for Chapter 7 bankruptcy protection “as soon as practicable,” abandoning any hope of reorganization. 
Board Involvement:
Its Board of Directors, even after consulting legal and financial advisors, approved the immediate shutdown, revealing governance failures. 
Lender Acceleration:
A Notice of Acceleration from its lenders earlier this month underscored the Company’s debt delinquency and precipitated its collapse. 
Failed Financing:
Despite aggressively exploring multiple financing paths, Polished.com was unable to secure any additional capital to sustain operations
Asset‑Liability Gap:
The Chapter 7 petition revealed just $46.97 million in assets against $330.54 million in liabilities, signifying deep insolvency
Liquidation Path:
Management conceded that no strategic alternatives remained, forcing the choice of asset liquidation over corporate rescue.
Legal Representation:
Wilmington Partner Scott D. Cousins and New York Partner Minyao Wang were retained to oversee the Chapter 7 proceedings, highlighting severe distress.
Delisting Proceedings:
NYSE American commenced delisting procedures, declaring Polished.com unsuitable for continued trading after its bankruptcy announcement.
Investor Impact:
Trading was suspended immediately, obliterating shareholder value and erasing market confidence in the Company’s equity.
Management Oversight:
The leadership’s failure to anticipate the liquidity crunch demonstrated critical strategic missteps and oversight lapses.

Conclusion
Polished.com’s collapse stands as a stark illustration of the perils of debt‑fueled expansion without sustainable financing, resulting in severe governance breakdowns and unmet obligations to stakeholders  The liquidation process, overseen by Wilmington Partner Scott D. Cousins and New York Partner Minyao Wang, offers little hope of meaningful creditor recovery amid the company’s overwhelming debt burden . The abrupt termination of services inflicted significant reputational damage, alienating customers and retail partners with lasting negative consequences . Polished.com’s failure has prompted intensified regulatory scrutiny and served as a cautionary tale, highlighting the critical importance of robust liquidity management and transparent financial reporting