|By John G. Edwards, Las Vegas
Review-JournalMcClatchy-Tribune Regional News
Nov. 29, 2008 - --YourBuyer Inc., a purchasing company established by two former managers at failed PurchasePro.com, filed for bankruptcy listing $16.1 million in liabilities and $2,000 in assets.
In court papers filed Wednesday, YourBuyer reported $4.9 million in gross income last year and $3.6 million in the previous year.
Mark McNally, a former data processing manager at PurchasePro, and Chief Operating Officer Doug Miller, another former worker at PurchasePro, started the company six years ago. Mark Brown, former president of R&R Partners, the public relations and advertising firm, was YourBuyer's founding president and a major investor.
Executives at YourBuyer could not be reached for comment Friday on the decision to liquidate company assets through Chapter 7 bankruptcy.
YourBuyer made purchases for Strip casino resorts, construction projects and food-packaging companies.
Similarly, PurchasePro used computer software to conduct online auctions so businesses could select from multiple bids for supplies, equipment and services.
Charles "Junior" Johnson, former chief executive officer of PurchasePro, was sentenced to nine years in prison on Nov. 14 for his role in falsifying financial reports to the public and attempts to cover up crimes at PurchasePro. Several other executives pleaded guilty to white-collar crimes at PurchasePro.
McNally and his associates weren't accused of any wrongdoing at PurchasePro. Mary Alyce Smith, former director of human resources at PurchasePro, remembers McNally as her first manager at PurchasePro.
"He was one of the good guys," Smith said.
She described him as bright, enthusiastic and receptive to feedback from employees.
McNally owned about 30 percent of the shares in YourBuyer.
Ronald Richardson, one of the company's investors, is owed $7 million. Brown personally guaranteed $500,000 of Richardson's loan, and Brown also is owed $600,000 as a creditor.
The other creditors included the landlord for an office in Shanghai, China.
A year ago, YourBuyer announced the appointment of an advisory board that included former Gov. Bob Miller, political adviser Sig Rogich, two executives from Pakistan and others. The announcement is the last statement posted on the Web site.
Review-Journal writer Arnold M. Knightly contributed to this report.
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