Kansas-based Brooke Corp. laid off most of its staff after a prospective buyer withdrew an offer to purchase the financial services holding company.
The Overland Park-based company and Brooke Capital Corp. filed for Chapter 11 bankruptcy protection on Tuesday Oct. 25 to prepare for a possible sale to two Kansas businessmen.
In September, the Bank of New York Mellon filed a lawsuit seeking more than $5 million from Brooke Corp. Last week, Citizens Bank and Trust Co., of Chillicothe, Mo., sued to recover a $9 million loan to Brooke Capital that the bank says is in default.
But Lysle Davidson, an insurance agent from Johnson City, and Terry Nelson, vice chairman of First State Bank in Norton, withdrew an offer to acquire Brooke’s insurance network saying there weren’t enough agencies left.
Many of Brooke’s agents have secured releases from their franchise agreements.
Nelson says the offer was contingent on 350 agencies remaining in the network.
Brooke on Oct. 31 laid off nearly 70 employees. A skeletal staff was left at its Overland Park headquarters and its support operations in Phillipsburg, Kan.
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