May 1987, Eddie began proceedings to make the company a privately held company again, seeking out Canadian investment banker Samuel Belzberg as a partner. As this was going on, another electronics discounter entered the picture and started buying up shares in Crazy Eddie. This man was Elias Zinn, who was based in Houston and was running his own business across Texas. Zinn eventually partnered with management consultant Victor Palmieri's backing to purchase $17.5 million worth of Crazy Eddie stock, which represented 7.5% of the outstanding shares. This would eventually result in Zinn and Palmieri ended up with the controlling interest in the company, which enabled them to initiate a hostile takeover. Once rumors of a takeover started, financial analysts began to examine more closely Crazy Eddie's financial situation. What they discovered was that while most stockholders of the company had lost money since 1984, Eddie had sold 6.5 million shares worth $74 million. A flurry of stockholder lawsuits were filed against the Antar family. Eddie and Sammy Antar briefly attempted to counter-offer Zinn's takeover, but Zinn quickly topped their funds. The Antars' bid was ended, and Zinn became the new owner of Crazy Eddie on November 6, 1987. He immediately dismissed the rest of the Antar family from any important jobs. When Palmieri's financial analysts completed their preliminary audit a few weeks after the takeover, they estimated that Crazy Eddie's inventory was short by $40 to $50 million. The final figure was $80 million. By June 1988, Crazy Eddie's suppliers were demanding the liquidation of the company, so they could recover money owed to them; in 1989 they got their wish. The closing of Crazy Eddie began in March 1989, as the company shuttered 17 of its 43 stores. On June 6, 1989, Crazy Eddie was served with a petition by five of its creditors, who had not been paid a total of $860,000 they were owed, which sought to have the company forced into bankruptcy. The company originally planned to fight the petition and file for dismissal, but 15 days later Crazy Eddie voluntarily filed for Chapter 11 bankruptcy protection. Company president and CEO Peter Martosella cited problems created by the creditors' position (which he termed "ill-advised"), but said business would be conducted as usual at the remaining 26 stores and that Crazy Eddie was still a strong franchise. The company vowed to stay in business, but, despite Martosella's