Southern Motion working through bankruptcy process

PONTOTOC, Miss. (WTVA) — A large employer in north Mississippi filed for bankruptcy.

Southern Motion filed for Chapter 11 bankruptcy on Aug. 4.

A case filed under Chapter 11 of the bankruptcy code is frequently referred to as a “reorganization,” according to the Internal Revenue Service (IRS).

New court documents show the furniture manufacturer has been approved to continue paying its workers and maintaining employee benefits while it works through the bankruptcy process.

Southern Motion had approximately 645 employees when it entered bankruptcy.

The bankruptcy filing does not indicate that the company has laid off employees.

Now, the bankruptcy case will continue in the fall. A hearing is scheduled for Oct. 7 at the federal courthouse in Oxford.