Filing Alert: Rosland Capital Chapter 11
Rosland Capital LLC, a Los Angeles, CA-based precious metals asset management firm that sells physical gold and other precious metals, either for direct purc...
Rosland Capital LLC, a Los Angeles, CA-based precious metals asset management firm that sells physical gold and other precious metals, either for direct purchase or as part of precious metal-backed IRAs, filed for Chapter 11 protection on Jul. 2 in the U.S. Bankruptcy Court for the Central District of California.
The liquidating chapter 11 filing aims to effectuate a court-supervised wind down and a competitive marketing and sale process for the Debtor's principal remaining asset — the "Customer Information Assets," comprising the past, active, and potential customer lists, customer relationship information, customer data, and marketing records developed over years of operation. The Debtor no longer holds any inventory of precious metals, coins, or bullion and retains only limited cash in its accounts. Having terminated substantially all employees as of June 19, 2026 (retaining one accounting and one IT employee on a consulting basis), the Debtor intends to promptly file a motion to approve sale procedures for a competitive auction of the Customer Information Assets, with potential purchasers including precious metals industry participants, direct marketing and customer-acquisition platforms, financial services businesses, and lead-generation companies. The Debtor further intends to file a plan providing for a liquidating trust to administer all remaining assets, including sale proceeds and any litigation recoveries, with the anticipated official committee of unsecured creditors expected to have significant input into the trust structure and sale process.
Michael Hogan of Armanino Advisory LLC, serving as CRO, concluded that a liquidating chapter 11 provides the best opportunity to maximize value relative to the alternatives evaluated — continued operations, an out-of-court wind down, an assignment for the benefit of creditors, or a chapter 7 liquidation. The Debtor attributes its distress to a sustained deterioration in profitability compounded by an unsustainable order-fulfillment model amid record precious metals prices. Revenue declined from approximately $151.2 million in 2021 to approximately $97.8 million in 2025 (with approximately $28.0 million recorded prepetition in 2026), while gross margin compressed from approximately 18.4% to approximately 8.7% over the same period. After generating net income of approximately $10.2 million in 2021, the Debtor recorded cumulative net losses exceeding $24 million from 2022 through 2025, plus an additional net loss of approximately $3.2 million prepetition in 2026.
The distress was exacerbated by a historic surge in gold prices, which rose from a $1,500–$2,000 per ounce range through 2023 to approximately $4,300 per ounce at year-end 2025 and a 2026 peak of approximately $5,600 per ounce. The surge drove a spike in orders the Debtor could not timely fulfill, producing a months-long lag between a customer's prepaid order and the Debtor's subsequent purchase from third-party suppliers — during which rising prices frequently caused the Debtor's replacement cost to exceed the amount the customer had paid. A commission structure paying sales representatives 15% to 35% of gross profit upon receipt of customer funds — earned even where orders were later cancelled or went unfulfilled — further pressured liquidity. The resulting backlog left the Debtor unable to timely deliver product or honor repurchase obligations, generating an approximately $49 million Deferred Revenue balance and an approximately $11.8 million Buy Back List as of the petition date, mounting customer claims (approximately 470 demands submitted through the compliance department as of June 27, with one customer lawsuit filed to date), and pending investigations by the New York Attorney General and the SEC, the latter concerning the Debtor's metal-backed IRA products.
The company reports $1 million to $10 million in assets and $50 million to $100 million in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-16650.
Top Unsecured Claims
Key Parties
Counsel:
- Brian L. Davidoff
Greenberg Glusker LLP
Email: BDavidoff@GreenbergGlusker.com
Signatories:
- Michael Hogan – Chief Restructuring Officer