On April 11, 2025, Hypertech, Inc., a Memphis-based company known for its performance automotive parts and tuning solutions, filed a voluntary petition for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Middle District of Tennessee. The case, numbered 3:25-bk-01562, is presided over by Judge Charles M. Walker.
What Is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy allows businesses to reorganize their debts and operations while continuing to operate. This process provides the company with the opportunity to return to profitability without the immediate threat of liquidation. Unlike Chapter 7 bankruptcy, which involves the liquidation of assets, Chapter 11 enables the debtor to propose a plan to repay creditors over time.
Company Overview
Hypertech, Inc. operates from its facility at 7375 Adrianne Place, Memphis, TN 38133-8958. The company also conducts business under the name Hi-Performance Auto Sales. The filing indicates that Hypertech does not anticipate having sufficient assets to make a payment to unsecured creditors.
Legal Representation
The company is represented by attorneys from EmergeLaw, PLC, based in Nashville, Tennessee. The U.S. Trustee assigned to the case is Megan Reed Seliber.
Next Steps in the Bankruptcy Process
A significant upcoming event in the bankruptcy proceedings is the Section 341 meeting of creditors, scheduled for May 23, 2025. This meeting allows creditors to question the debtor about its financial affairs and the proposed reorganization plan. It is a critical step in the Chapter 11 process, providing transparency and an opportunity for creditor input.
Implications for Stakeholders
Creditors
Creditors will have the opportunity to participate in the bankruptcy process, including the Section 341 meeting. They may file proofs of claim to assert their rights to repayment. The outcome of the bankruptcy proceedings will determine the extent to which creditors are repaid.
Employees
The filing does not automatically affect the employment status of Hypertech’s employees. However, the company may need to make operational adjustments as part of its reorganization plan. Employees should stay informed about developments and any potential changes to their employment terms.
Customers and Suppliers
Customers and suppliers may experience changes in business operations, including potential delays or modifications in product offerings. It’s advisable for both parties to maintain open communication with Hypertech to understand how the bankruptcy may affect ongoing transactions.
Looking Ahead
Hypertech’s Chapter 11 filing marks a pivotal moment in the company’s history. The success of its reorganization efforts will depend on the development of a feasible plan that satisfies creditor claims and restores the company’s financial health. Stakeholders should monitor the proceedings closely, as the outcomes will have lasting impacts on the company’s future operations and relationships within the automotive performance industry.
For those interested in following the bankruptcy case, detailed docket information and court filings are available through the U.S. Bankruptcy Court for the Middle District of Tennessee and other legal tracking platforms.
As the situation develops, Hypertech’s ability to navigate this challenging period will be crucial in determining its path forward in the competitive automotive aftermarket sector.
