Apollo West LLC, of Tukwila, Wash., has bought Spokane-based Apollo Plastics Inc., thereby largely resolving a lawsuit and bankruptcy filing involving the latter company, says Kevin ORourke, Apollo Plastics bankruptcy attorney.


ORourke declines to disclose the sale price, but says the agreement, which was signed Feb. 1, satisfies a $970,000 judgment owed to Apollo West following a breach-of-contract lawsuit. That debt was the largest unsecured debt listed in a Chapter 11 bankruptcy filing by Apollo Plastics last fall. The company at that time had listed assets of $800,000 and debts of $1.8 million.


Apollo Plastics was owned by Michael Orlich, Steven McDonald, and Scott Erickson, all of Spokane. The company operates a manufacturing plant in Spokane Valley and two retail Apollo Spas stores in Spokane and one in Coeur dAlene.


Apollo West said in a release it bought the three stores in the Spokane-Coeur dAlene area. The company said it would hire salespeople for the stores and 10 to 15 skilled craftsmen for the plant. It employs about 60 now. Earlier, Apollo Plastics closed a Tri-Cities store.


Apollo West is owned and operated by Matt Peterson, the son of the original Apollo Spas founder, Colin Taylor Sr. Apollo West operates six retail stores in the Seattle area. The two companies originally were part of the same operation, but divided in 2001. Apollo Plastics continued to supply spas to Apollo West.


ORourke says Apollo Plastics still is considering whether to submit the sale agreement to the U.S. Bankruptcy Court to be considered as part of a reorganization plan or if it will seek a dismissal of the bankruptcy case. Either way, ORourke says, the previous owners will remain with Apollo Plastics during the transition phase only, to help ensure minimal disruption to the continued operation of the business.


Its real beneficial for both parties, and everyones pleased, ORourke says.


Contact Jeanne Gustafson at (509) 344-1264 or via e-mail at jeanneg@spokanejournal.com.