Buffalo Debt Collector Shuts Down in Difficult Economy

An accounts receivable management firm based in Buffalo, N.Y. closed its doors and laid off its employees late last week citing “economic reasons.”

Elite Recovery Services closed for business Thursday, leaving 73 people without a job. But company leaders are hopeful that the business might be saved, paving the way to reopen operations.

Elite CEO Richard Corica told The Buffalo News that the company did not file for bankruptcy and that it did not have a problem paying its debt. Elite was simply spending more to operate than it was bringing in.

But Corica also said that he is working with a third party to save the company, although he declined to provide specifics to the Buffalo newspaper. Corica said that even if the company cannot be saved, he hopes to provide assistance to laid off employees, but won’t know how that will work until everything is finalized.

Elite was a debt buyer and collection agency.

The closure is the second ARM industry failure in the Buffalo area in the past month. First American Recovery Services filed for Chapter 11 bankruptcy protection last month. It cited a slowdown in payments from consumers and the decision by its lender to shut off a credit line.