Oklahoma City-based contractor Bloom Electric Services and several affiliated companies filed for Chapter 11 bankruptcy this week.
The two brothers who have run the companies for 30 years, Richard and David Bloom, have been battling in court over how to divide the businesses since January.
Bloom Electric, based at 9525 W Reno, has more than 200 employees, according to court documents. The companies also have offices in Alva, the Dallas-Fort Worth area, and North Dakota.
Richard Bloom president and chief operating officer of the Bloom companies, moved to file for Chapter 11 after failing to reach a settlement with his brother, David Bloom, over the assets.
Bloom Electric Services LLC; Bloom Transportation LLC; Bloom Properties LLC and Bloom Dakotas LLC all filed for Chapter 11 bankruptcy on Sunday in U.S. Bankruptcy Court in Oklahoma City. Bloom Electric Holdings LLC, a holding company for the Bloom companies, also filed for Chapter 11 bankruptcy in May, but U.S. Bankruptcy Court Judge Niles Jackson dismissed the case on Monday.
Attorneys for David Bloom have asked the bankruptcy court to dismiss the Bloom Electric Holdings bankruptcy case and have a receiver take control of the companies.
The Bloom companies provide industrial and infrastructure services for the oil and gas industry, as well as manufacturing and utilities, with a focus on oil field services. Bloom was founded in Oklahoma City more than 50 years ago by Richard and David Bloom’s father, Donald Bloom, who died in 2009.
According to documents filed by David Bloom, the two brothers had run the business together for more than 30 years before deciding to divide it in late 2013. The division was almost complete when, in January, Richard Bloom allegedly had his brother forcibly removed from the companies’ Oklahoma City offices, David Bloom claims.
“Richard Bloom brought in three Oklahoma City police officers to Bloom Electric’s headquarters and orchestrated a public ‘firing’ of David Bloom, along with 12 other key employees that had planned to go to work with David Bloom following the planned company division,” David Bloom claims in court documents.
Richard Bloom claims in court documents that David Bloom and/or another former Bloom employee threatened to “ruin” the company after they were fired and told Bloom workers to walk off job sites, causing work stoppages for contracts with the Grand River Dam Authority and Chesapeake Energy.
Calls to Bloom’s corporate offices and attorneys for Richard Bloom were not returned Monday.
In a statement, David Bloom said he hoped the dispute could be resolved quickly.
“For more than 30 years, my brother and I worked together to make our mark on Bloom Electric. I would have preferred to work out any personal disagreements privately with my brother, but regrettably he elected to file a contentious lawsuit against me, and has now raised a number of extraneous and distracting issues that have further complicated this matter,” David Bloom said in the statement. “I truly want the best for our company and I hope that we can reach a quick resolution. If we cannot, I look forward to continuing to present my side of the story and let the legal process work to its conclusion.”