Chester Hardware files for bankruptcy

By Shawn Cunningham
© 2026 Telegraph Publishing LLC

While the note on the front door said the business at 21 Main St. would be closed from July 3 through 13, on July 7, the owner of Chester Hardware & Mercantile was filing for Chapter 7 bankruptcy. Under Chapter 7, the assets of a debtor are sold to satisfy, in part, the claims of its creditors and the business is liquidated.

The store has not re-opened.

The Telegraph reporting comes from the filings with the Federal Bankruptcy Court for Vermont.

The bankruptcy involves two limited liability companies registered by Demi Keitel of Grafton as the sole owner. Chester Hardware & Mercantile LLC is the actual business, while Opossum Kingdom LLC owns the building and leases it to the store.  According to schedules that are part of the filing, Opossum Kingdom has assets of $741,408 and liabilities of $863,203, which includes $698,203 in loans secured by the property. On the other hand, the store has assets of $213,882 — mostly in unsold merchandise — with liabilities of $999,170, including the $698,203 of Opossum Kingdom.

The Telegraph has left a message at the owner’s phone seeking comment.

The real estate debt is considered secured by the property itself. That debt is held by 22nd State Bank of Mobile, Ala., along with the U.S. Small Business Administration, which indicates that the SBA may have guaranteed the loan.

Some of the outstanding creditors include American Express Bank and Chase Bank USA (for credit card payments) and Do It Best Corp. for inventory. Also in the filing is a loan from previous owners Bob and Julie Pollard for $165,000. Julie Pollard had purchased the store in 2000. Under their ownership, the store catered to contractors and DIY homeowners.

It appears that the business has been declining over the past few years. It was purchased from the Pollards in October 2023 and in 2024 it had gross sales of $567,951, according to the filing. The next year the receipts dropped to $444,817 and, for the first half of 2026, the store brought in only $97,357.

The next step is a meeting of the creditors on Aug. 5 held by bankruptcy trustee Raymond Obuchowski. The filing automatically stops certain actions against the debtor and the debtor’s property, according to a notice from the court. The duration of that stay can be limited, but the debtor can request that it be extended.