USA Discounters Ltd. filed for bankruptcy protection in the Delaware Bankruptcy Court and plans to wind down its business.  The case is before the Honorable Christopher S. Sontchi, and is assigned case no. 15-11755-CSS.

Prior to its bankruptcy filing, USA Discounters sold furniture, appliances, electronics, jewelry and other products from stores located near military bases, often financing such purchases through its own credit program. The company cited the tough retail climate, a defaulted loan and various governmental actions regarding its operations as factors for the chapter 11 filing.

USA Discounters expects to use its time in chapter 11 to wind down its operations. It closed its twenty-four USA Living stores before filing for bankruptcy protection and is still considering its options for its seven Fletcher’s Jewelers stores.

Founded in 1991 in Norfolk, Va., USA Discounters financed customers’ purchases of such items as televisions, washers, dryers and jewelry—products it said “might otherwise be out of reach” for its customers, many of whom were military members and their families and had “limited resources or tarnished credit profiles.

USA Discounters has stated that it is owed an estimated $114 million on existing payment plans, its most significant asset.

Carl D. Neff is a partner with the law firm of Fox Rothschild LLP.  Carl is admitted in Delaware and regularly practices before the United States Bankruptcy Court for the District of Delaware. You can reach Carl at (302) 622-4272 or at