The end appears to be getting nearer for the Erie office of a bankrupt funeral home, though the business might still survive elsewhere.
The Erie location of the Pitts Funeral Home and Cremation Services, 2926 Pine Ave., is on its way to going up for sale, though the funeral home’s main office in Aliquippa is on the path to staying open, according to records in U.S. Bankruptcy Court in Pittsburgh.
The recommendation for the sale of the Erie property is included in a April 9 report of the bankruptcy trustee who is handling the case.
A bankruptcy trustee is recommending the sale of the Pitts Funeral Home and Cremation Services’ Erie office at 2926 Pine Ave.
A U.S. bankruptcy judge asked for the report to help her determine whether to keep the bankruptcy of the Pitts Funeral Home in Chapter 11 reorganization or convert it to Chapter 7 liquidation. The funeral home filed for Chapter 11 in November with the goal of remaining in business, reorganizing and paying its creditors over time.
The trustee, William G. Krieger, of Pittsburgh, is recommending that the bankruptcy remain in Chapter 11, according to the report. But the report also recommends the sale of the Erie property to help raise money for the Pitts Funeral Home to pay creditors while continuing to operate the Aliquippa office.
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“While the Chapter 11 Trustee’s analysis is ongoing,” according to the report, “Chapter 11 Trustee currently believes that Debtor has the ability to successfully reorganize its operations and develop a confirmable plan of reorganization through sale of the Erie property and the ongoing profitable operation of Debtor’s Aliquippa location.”
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Judge Carlota Bohm scheduled a hearing for April 15 to review the recommendation and decide whether to convert the case from Chapter 11 to Chapter 7. The funeral home’s Erie and Aliquippa properties and other assets would be sold under Chapter 7 liquidation.
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The Pitts Funeral Home purchased the Pine Avenue property in Erie for $228,800 in 2015 from the Law Funeral Home, according to property records.
In its Chapter 11 petition, the Pitts Funeral Home listed assets of $545,000 and liabilities of $631,728 ― including $30,000 in unpaid taxes on the Pine Avenue property, according to bankruptcy records.
Embalming lawsuit listed in bankruptcy filing
The Pitts Funeral Home’s bankruptcy petition also listed a potential liability related to a lawsuit filed against it in Erie County Common Pleas Court in 2023. The suit claims the funeral home mishandled the body of a man who died in September 2022.
The lawsuit states that the body “was not embalmed, refrigerated or placed in an airtight container within 24 hours of death” as Pennsylvania law requires. The Pitts Funeral Home said it did nothing wrong, according to court records.
The case remains unresolved.
Contact Ed Palattella at epalattella@usatodayco.com or 814-870-1813.
This article originally appeared on Erie Times-News: Bankruptcy report calls for the sale of funeral home’s Erie property