Beware of Beckett!

[Exhibitman]

"Marx, which had been approved by PSA as a group submission outlet, indicated it had taken in over $954,000 in 2020, had $4.4 million in revenue during 2021 but because of its debts, ran out of money in August."

"the company says the suspension of PSA’s lower cost services last year resulted in a disruption of its revenue. After ramping up its business in 2020 including the opening of a storefront, Marx says it “was in so much debt that all revenues were being absorbed by the daily and weekly payments to merchant banks which made loans to the business.”

"In the bankruptcy documents, Marx blamed PSA’s 2021 shutdown of most service levels on much of its troubles, but also cited another business’ failure to pay some $60,000 it was owed and two bookkeepers it hired. In its filing, Marx indicated the bookkeeper paid herself about $50,000 more than the $48,000 per year salary she was supposed to receive. Both of the company’s bookkeepers left their jobs in November of last year. It also says a customer failed to pay a $60,000 debt to the company related to card grading."

So, gross revenue quadrupled but a $110K loss ate the customer money? Suuure. The Marx guys should be going to jail for theft for what they did. Lots of businesses get money from customers in advance. Whether you call it a deposit or a retainer or an advance, it is still money paid in trust for a service. That money should have been there held in a segregated account regardless of the company's financial woes. Instead, it sounds like Marx treated it like a piggy bank and in effect ended up running a ponzi scheme.