Casa Bique Inc. filed for voluntary Chapter 7 bankruptcy in September, setting off a legal response from SouthTrust Bank. SouthTrust's motion for relief cites a $2.4 million line of credit, which Casa Bique President R. Allen Douglas increased in June 2001 from its $1.9 million line of credit.

Of that $2.4 million line of credit, an outstanding balance of $1.2 million remains, including nearly $1.17 million in principal and $63,631 in interest, according to documents filed in U.S. Bankruptcy Court for the Middle District of North Carolina.

As Douglas negotiated with bankers to close Casa Bique, he was developing Classics by Casa Bique as a vendor he spun off from it last spring. Classics showed at the October High Point market in the building that had housed Casa Bique. Douglas said he is hopeful he can identify investors to help convert the building into a year-round design facility.

Liabilities totaled nearly $829,940 while assets were listed at $1,750 for the Thomasville, N.C.-vendor, which employs about 35 people. Among the major unsecured creditors are: Kenneth Huggins of Greensboro, N.C., $154,327; High Point, N.C.-based CLA Properties, $99,000; Hong Kong-based Hung Sing, $74,200; Dulles, Va.-based Trans Group International, $72,560 and Saudi Arabia-based Habitat Furniture & Contract, $45,502.