A federal bankruptcy judge has removed the owner of A.M. Pyrotechnics LLC, Aaron Mayfield, from control of the company following accusations of concealing nearly $300,000 in prepaid customer funds during the bankruptcy process, including money linked to Mountain Home’s annual Red, White & Blue Festival fireworks.
In a July 27 order, the court transferred control of the company to Joplin attorney Norman Rouse, appointed as the trustee in the case. The decision follows allegations by the U.S. Trustee, a Justice Department office overseeing bankruptcy cases, that Mayfield failed to disclose client prepayments, falsely represented the company's ability to fulfill contracts, and took on additional customers without revealing the company's financial status. Mayfield did not contest the motion.
Court filings indicate that A.M. Pyrotechnics filed for Chapter 11 bankruptcy in February under Subchapter V, a streamlined process for small businesses. In such cases, company owners typically remain in charge while developing a repayment plan. However, the U.S. Trustee alleged that Mayfield mismanaged the company and was dishonest with the court. For months, he maintained that the company would proceed with its already-booked fireworks shows, even as cancellations loomed.
Mountain Home learned on June 27—just days before its festival—that A.M. Pyrotechnics would not deliver the scheduled fireworks display, citing weather complications and logistical issues. By then, the Chamber of Commerce had already paid the company $30,000 as a deposit, according to records filed with the court. Chamber officials reported spending an additional $20,000 to secure a replacement fireworks vendor at the last minute.
The bankruptcy filings show a broader pattern of cancellations. A June 30 report from Mayfield listed 26 upcoming fireworks shows, of which 13 were ultimately canceled. Many customers, including communities across Arkansas, Missouri, Oklahoma, and Illinois, were left unpaid and unable to file claims because the company had failed to identify them as creditors until after the deadline for claims had passed. Seven of the unpaid customers are based in Arkansas, accounting for $151,500 of the $307,000 in disclosed claims.
A.M. Pyrotechnics has faced financial challenges for years. A 2014 Chapter 11 bankruptcy filing and a 2025 warehouse fire that killed an employee further strained the business. Mayfield told the court that customer deposits had been used to fund chemicals, wages, and production costs for fireworks that were never completed due to the loss of the company's manufacturing license.
The company acknowledged that its financial records showed questionable expenses, including personal withdrawals, clothing purchases, grocery bills, and Netflix charges, which Mayfield agreed to reimburse partly after creditors raised concerns. A federal judge overseeing the case cited "gross mismanagement" as the reason for Mayfield’s removal but refrained from ruling on dishonesty allegations.
The Arkansas Attorney General's office recently joined the case as a creditor, signaling possible investigations under the state's Deceptive Trade Practices Act, which could lead to consumer restitution and civil penalties. Senior Assistant Attorney General Lydia Hamlet entered the case on September 1, though it remains unclear how the state will proceed.
Despite Mayfield's claims that unfinished fireworks inventory valued at around $250,000 could serve as a bankruptcy estate asset, the company’s ability to cover its substantial debts remains uncertain. These include over $315,000 in secured loans, over $120,000 in tax liabilities, and claims from unsecured creditors such as Mountain Home, which sit at the back of the repayment line.
The court has yet to approve a sale of A.M. Pyrotechnics’ remaining assets. The appointed trustee, Norman Rouse, has been tasked with managing the business and evaluating options for liquidating its assets.
As creditors, including Mountain Home, await resolution, the fate of the company’s unfinished fireworks and the repayment of deposits remain uncertain. For Arkansas communities left without promised displays, restitution could hinge on what value, if any, Rouse can recover from the company’s remaining assets.