Bankruptcy
In 1992, DAK Industries filed a petition seeking relief under Chapter 11 of the U.S. Bankruptcy Code. DAK was forced to file for protection when Tokai Bank, a Japanese bank, suddenly pulled DAK's $18 million line of credit in August 1992. DAK continued in business until the case was converted to Chapter 7 in December 1994 and the company's inventory was liquidated.
Kaplan wrote on his website, "Well the truth is, in 1994 I lost DAK. And it closed. I really can't blame anyone but myself. I was behind the banking relationship. It was the beginning of the Asian Meltdown. As far as I can see, my bank decided to retrench and we lost our credit line. I had never been able to find an American bank that liked the high volume/low margin business I had built."
DAK's catalog mailing list and customer database was valuable and sold during the bankruptcy proceedings to VentureDirect Worldwide. It was managed by Xactmail.com, a division of VentureDirect. Kaplan said it was not his buyers list, but a list of former DAK customers matched up against some other database.
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