Accredited Limousine Service LLC filed for Chapter 11 protection Feb. 6 in federal bankruptcy court, White Plains.
“The market share for livery car service has shifted substantially to Uber, Lyft and other on-demand, app-based services,” Accredited’s owner, Douglas Thornton, stated in an affidavit.
He said revenues have declined sharply, cash flow is insufficient to pay all operating expenses and the company has fallen behind on state tax obligations.
Accredited was founded in 2005, more than three years before Uber existed. It operates a fleet of 26 vehicles, including sedans, SUVs and mini-buses, and it has 27 full-time and five part-time employees.
Last year it booked nearly $2.9 million in revenues, according to its financial statement, and $205,119 net income. But cash flow declined by more than $14,000.
Accredited declared $663,575 in assets and $1,494,869 in liabilities.
The fleet, its primary asset, is worth $612,300, but Accredited owes $516,143 in vehicle financing charges and another $617,071 to financial companies to cover “all assets” and credit card debts.
Last month the state issued $192,468 in tax warrants.
Thornton said he believes that Chapter 11 protection will enable him to pay creditors more than if the company were forced into liquidation.
While the action stops debt enforcement, he said, the company will seek new financing or investors or attempt to reorganize its financial affairs.
The company is represented by attorney Douglas J. Pick, Pick & Zabicki LLP, Manhattan.