Ronco files for bankruptcy

[one...two...tree 2,762]

Veg-O-Matic king Ron Popeil used to love to say, "But wait, there's more!"

But only barely, it turns out, at least in regard to the company he founded.

Ronco Corp., based in the Simi Valley, has filed for Chapter 11 bankruptcy protection, declaring it has $32.7 million in debts and $13.9 million in assets.

Popeil, 72, an irrepressible pitchman who used infomercials to sell products such as wide-ranging as the Pocket Fisherman, Showtime Rotisserie and GLH spray-on hair, is the largest creditor.

Two years ago, he sold Ronco, the company he founded in 1958. The price was about $55 million -- in what was supposed to be two easy payments.

Popeil is still owed $11.8 million, according to the Thursday's filing in U.S. Bankruptcy Court in Woodland Hills. Other creditors include the Food Network, Court TV and the QVC home shopping network.

A spokeswoman for Popeil, who lives in Beverly Hills, said he had no comment on the bankruptcy filing.

Part of the deal when Popeil sold the company was that it could continue to use his image, which is still on the company website. Anyone calling Ronco's headquarters will hear Popeil's voice -- familiar to those who've heard some of his late-night pitches -- saying, "If you know the extension of the person you're calling…. "

Ronco Chief Executive John Reiland said the company would continue its operations uninterrupted and that none of its 95 employees would be laid off. Chapter 11 allows a business to keep running while it works out a plan to pay its debts.

Ronco has sold $1.4 billion of and-if-you-act-now gadgets, court documents show. It had a previous tour through bankruptcy in the 1980s.

Reiland wouldn't discuss how the company got into its current financial state. But court documents said that an initial $40-million payment to Popeil sliced and diced the company's finances, leaving it severely short of cash.

The company has reached a nonbinding agreement with a new buyer, but Reiland wouldn't say who that is.

It's not Popeil, the spokeswoman said. The man considered to be the father of the infomercial is too busy working on his latest invention -- a home turkey fryer.

david.colker@latimes.com

[JoeMama 0]

"But wait, there's more!"

[natty bumppo 297]

What about the Sledge-o-Matic ?

Oh wait ... that's Gallagher ...

[Jamie76 0]

say it ain't so I'll miss his infomercials...especially the one where he spray paints his bald spot on his head

Edited June 16, 2007 by Jamie76

[William33 110]

How did that happen?

He should have obtained the patent for "tater mitts", only $19.95...