CHICAGO Indiana Steel & Tube Inc. has accused Merchants Moving & Storage Inc. of failing to pay for more than $300,000 in products.
Brownstown, Ind.-based Indiana Steel & Tube said it supplied Yoakum, Texas-based Merchants Moving, which does business as Ranger Gate Co., at least $301,085 in products going back at least as far as July 2011, according to a complaint filed in U.S. District Court in Indiana.
Indiana Steel & Tube alleges that Merchants Moving had "refused" to pay "despite numerous demands for payment." The company is seeking the amount it says it is owed, plus interest, legal costs, court fees and other unspecified relief.
Ranger Gate makes ranch gates, livestock pens, trailer products, water tanks and other products largely related to agriculture, according to its website.
David Jahn, the president of Merchants Moving, told AMM he was not aware of the case but said that allegations that his company might not have paid Indiana Steel & Tube were "false in every aspect."
"We dont owe them anything. We dont owe them a penny," he said. "We are a reputable company. We have been in business for over 60 years, and we wouldnt be around if we went around owing people money."
Indiana Steel & Tubes complaint comes as the company looks for a potential buyer or outside investor after filing for Chapter 11 bankruptcy protection in July (amm.com, Aug. 14). Steel distributors are listed as the companys biggest unsecured creditors, according to the bankruptcy filing.