Altrec Inc., the online retailer of outdoor clothing and gear based in Redmond, filed for Chapter 11 bankruptcy protection Monday while it courts a buyer, Remington Outdoor Co., according to court records.

The slide into indebtedness began with a December 2011 cyberattack that blocked the company website from search engines and crippled 2011 holiday sales, according to bankruptcy filings.

But the company — $3.5 million in debt and in receivership since Dec. 12 — would like to stay in business after selling itself and satisfying its creditors, records state.

The case is scheduled for a hearing at 10 a.m. today in U.S. Bankruptcy Court in Portland. The company seeks quick court approval to pay its bills, including wages and salaries for its 28 employees.

Altrec in court filings indicates it intends to increase employee hours while it pursues a sale to Remington. “Management intends … to ramp up their hours to critical operational levels and rehire additional key people as soon as it obtains the working capital necessary to fund a larger payroll,” according to a motion filed Monday.

The privately held company reported a net loss of $5.1 million for 2013, as of Nov. 30, according to its filing.

Altrec reported $5.7 million in assets and $24.2 million in liabilities. It also owns a database with information on 2.8 million customers. Between 2008 and 2011, Altrec’s annual revenues grew from $12.4 million to $59 million, according to its filing.

In addition to the retailer, it also owns GreatOutdoors.com, a website devoted to outdoor news and adventure travel.

Jon Stark, Redmond manager for Economic Development for Central Oregon, said as of March Altrec employed 109 people, although some may have been temporary employees.

“Altrec is a great local employer,” Stark said Tuesday. “We’ve been in discussions with them and are committed to do everything possible to make sure they continue to operate here and continue to grow under the restructure.”

Altrec moved to Redmond in 2006. Its offices and warehouse are located at 725 S.W. Umatilla Ave., just west of Redmond Airport.

The cyberattack in December 2011 snowballed into lost revenue, lost working capital and eventual receivership after its leading creditors took the company to state court in Deschutes County, according to bankruptcy filings.

A “distributed denial-of-service attack” blocked Altrec from Google and other search engines for “an extended period of time through the remainder of the peak holiday and winter sales season,” according to statements by Altrec President and CEO Michael Morford in a court filing. A denial-of-service attack consists of online attackers overwhelming a website with so many automated requests that it eventually bogs down.

At the same time, according to Morford’s statement, a major credit card company notified Altrec of fraud by some shoppers on its website. Altrec found no evidence of actual fraud, but took the precaution of notifying 100,000 customers their data my have been exposed, and spent large sums to upgrade its online security, according to Morford’s statement.

Sales dropped in 2012. Then, a commercial lender pulled the plug on $7.5 million in expected capital.

In fall 2013, Altrec “lacked the working capital necessary to acquire the levels of inventory needed for the holiday selling season and to support its normal operations.”

By October, the company had defaulted on bridge loans. In November, it closed its retail store in Bend, Great Outdoors.

Neither Morford nor the company’s bankruptcy attorney, David Foraker of Portland, returned calls Tuesday seeking comment.

Remington Outdoor Co., the firearms maker, is positioned as a “stalking horse bidder,” a potential buyer whose offer is acceptable to the largest creditors, according to the bankruptcy filing.

A stalking horse bidder with its minimum bid may spark interest from other potential buyers, but it may also impose conditions on subsequent bidding.

Remington would also loan Altrec $1 million to fund company operations during the sale process and pay expenses related to the Chapter 11 case, according to the bankruptcy filing. A Remington spokeswoman did not immediately return calls seeking comment.

Altrec’s largest creditors include financiers from La Jolla, Calif., and Portland, to whom Altrec owes nearly $6 million total, as well as well-known makers of outdoor gear and clothing: North Face, Arc’teryx, Patagonia, Keen and others.

The receiver appointed in circuit court, Clyde Hamstreet & Associates, advised selling Altrec under Chapter 11 in order to satisfy its creditors, and tentatively accepted the Remington bid after soliciting offers, according to Morford’s statement.

— Reporter, 541-617-7815, jditzler@bendbulletin.com