Earlier Spitzauer business venture ended in bankruptcy

By Kristi Pihl, Tri-City HeraldMarch 9, 2014 

At the same time Michael Spitzauer was looking for investors for his new biofuels company, another of his business ventures ended in bankruptcy and $1.3 million in unpaid debts.

A women's jewelry and clothing company called Talidesigns sought protection from creditors in 2005 after U.S. Bank accused Spitzauer and his company of fraud and breach of contract.

The bank sued Talidesigns after Spitzauer overdrew two bank accounts by $443,000 in January 2005, according to King County Superior Court documents.

The company sold the jewelry and clothing at special Costco store events, as well as online, Spitzauer said in bankruptcy documents.

Spitzauer claimed he was misled when he bought the company, saddling him with more debt than he was told. Talidesigns was incorporated in 2002, but Spitzauer did not say when he bought it.

He told the court that he and his wife put almost $1.8 million into the company to settle bills unpaid by the previous owner.

As with Green Power, some of Talidesigns' debt included unpaid rent to two landlords of warehouse and industrial space in Seattle and Kent. Both sued to evict Talidesigns six times within three years, according to court records.

Talidesigns was named in five other lawsuits in King County Superior Court for unpaid debts. And more creditors came forward when Talidesigns filed for bankruptcy, claiming utility bills, shipping expenses, employee wages and more had gone unpaid.

Later that year, U.S. Bank was awarded Talidesigns' inventory and equipment. While Spitzauer apparently repaid U.S. Bank almost $220,000, he still owed the rest of the civil judgment.

Talidesigns was liquidated in 2007.

Of the $55,000 that the bankruptcy trustee distributed, most went to administration costs for the bankruptcy case.

A majority of those owed money received nothing, according to court documents.

The same year, Spitzauer moved Green Power to Pasco and began plans to build a biofuels plant.

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