Thursday, September 23, 2021

CONSUMER ALERT: Attorney General James Seeks to Protect New Yorkers’ Wallets by Urging ShrubBucket Customers to File Bankruptcy Claim


Affected Consumers Should File Priority Claim by This Coming Monday, September 27, 2021

 New York Attorney General Letitia James today issued an alert, urging New York customers of ShrubBucket to immediately file a claim in the company’s ongoing bankruptcy proceedings if they are owed money for undelivered services or products. ShrubBucket — an internet company based out of Ithaca, New York that sells plants, shrubs, and trees — filed for bankruptcy on June 18, 2021, but continued to wrongfully accept deposits from consumers up to a week prior to its bankruptcy filing. Consumers who were affected are encouraged to file a priority claim by this coming Monday, September 27, 2021 to secure a refund.

“As New Yorkers continue to recover and rebuild from the economic fallout of the COVID-19 pandemic, it is essential that companies meet their obligations to consumers and do not dig themselves out of a hole by preying on customers,” said Attorney General James. “ShrubBucket knew it could not deliver services to New Yorkers, but still thought it could hedge some of its losses by charging for products days before the company filed for bankruptcy. All ShrubBucket customers who made a purchase but were not provided what was being advertised are encouraged to file a priority claim immediately to secure their refunds. My office is committed to rooting out fraud.”

ShrubBucket — which operated out of facilities in New York, Ohio, New Jersey, and Connecticut — personally delivered products to consumers’ homes at a lower cost than retail stores. The company filed for bankruptcy on June 18, 2021, yet continued to accept deposits from consumers as recent as a week prior to its bankruptcy filing. After receiving multiple complaints regarding the company’s practices, the Office of the Attorney General (OAG) began an investigation. Upon review of ShrubBucket’s bankruptcy filing, the OAG found that more than 2,000 consumers paid deposits in May of 2021, but the company never fulfilled its orders or provided refunds.

As ShrubBucket undergoes bankruptcy proceedings, the OAG encourages any affected consumers to file a 507(a)(7) priority claim to secure their refund. The last date to file proofs of claim is this upcoming Monday, September 27, 2021.

If consumers previously filed proofs of claim for products that were paid for and never received, then they should file an unsecured priority claim. Consumers who have already filed unsecured claims but did not file a 507(a)(7) priority claim may amend their filing. To amend a claim, individuals will need to check the “yes” box in response to question number 4 and input their claim number (if known) to show that this is an amended claim. Additionally, they will also need to input the claim amount in response to question number 7 and check “yes” in the second box (labeled “up to $3,025...”) in response to question number 12 and input the amount on that line. 

All proofs of claim should be completed and mailed to: United States Bankruptcy Court, James M. Hanley Federal Building, 100 South Clinton Street, Room 315, PO Box 7008, Syracuse, NY 13261-7008.

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