After falling way behind on their payments, Home Lind Inds. was forced to file for Chapter 7 bankruptcy by three of its creditors.

The involuntary petition was entered into the U.S. District Court in Eastern Pennsylvania this week for claims totaling $854,405. The three petitioners were: Global Link Logistics, who is owed $544,806; Max Point Design, $180,688; and TLC Consultants, $133,911. All three companies are claiming that Home Line has ceased to make payments, and since it is eligible to file for bankruptcy, it should so they can get their money.

In addition to the bankruptcy petition, Global Link Logistics has alleged a breach of contract, deceit and fraud against Home Line, which has prompted another open investigation into the company. An internal memo released by Home Line told employees that it will be closing for business and has already started the process of liquidating its inventory. This came after Home Line withdrew from the High Point Market and switched to a cash-on-delivery basis in an effort to reduce overhead costs.