Group filer Marx Cards files for bankruptcy
A Southern California-based company responsible for submitting maps for filing on behalf of clients has filed for bankruptcy.
The list of creditors includes hundreds of people across the country who submitted cards to Marx for filing with PSA and are still waiting to get them back. Hundreds of thousands of dollars in loans were also listed in the filing.
Marx, who had been approved by PSA as a group outlet, said he took in more than $954,000 in 2020, made $4.4 million in revenue in 2021, but due to his debts, he ran out of money in August.
Group submissions allow multiple collectors to submit cards through a third-party intermediary who manages the process of organizing the documents, delivering the cards to grading companies, and returning them to customers, usually at a lower cost .
In his statement of financial affairs through his attorney, Marx said it was “essentially an Instagram contact business” in which users contacted Marx through that platform to submit cards in their name. As a group bidder, Marx would take a small profit in exchange for his services, promising faster turnaround times and lower costs. However, the company says the suspension of lower-cost services from PSA last year led to a disruption in its revenue. After ramping up his activities in 2020, including opening a storefront, Marx says he “was so indebted that all income was absorbed by daily and weekly payments to merchant banks that provided loans to the ‘business”.
When some of the orders Marx had submitted to PSA were fulfilled and the money was due, Minares said his company said it didn’t have the funds available to pay. Ohio store owner who submitted cards through Marx on behalf of customers says he flew to Southern California and paid for them himself so he could return them to those customers , even though he had already paid Marx for the same work.
Marx blamed the closure of most of PSA’s service levels in 2021 on much of his problems, but also cited another company’s failure to pay some $60,000 owed to it and two accountants he was owed. she hired. In her filing, Marx said the accountant paid herself about $50,000 more than the $48,000 annual salary she was supposed to receive. The company’s two accountants left their jobs in November last year. It also says a customer failed to pay a $60,000 debt to the card filing company.
PSA recently pledged to complete the process of sorting the thousands of cards that collectors had sent to Marx free of charge, but said the situation was complex due to the volume of cards that had been submitted by Marx.