World of Sleep to shut down
By Clint Engel -- Furniture Today, February 24, 2002
CLEVELAND — World of Sleep, with 13 bedding specialty stores here and in Akron and Canton, Ohio, is shutting down after a change in control to a court-approved receiver last month.
Deere Park Associates has been hired as consultant to run the liquidation sales.
"I believe (World of Sleep) was a viable business," said Richard Glabman, Deere Park president. "But they had some major economic reversals" related to some non-business problems, he said, including a legal challenge over the use of the World of Sleep name and disputes with landlords.
Tony Amato, president and owner of the business before it was placed under the control of receiver Robert Greenwald in January, could not be reached for comment. Deere Park called World of Sleep the "largest independent brand name retail bedding chain in Ohio," but a sales figure was not available.
Deere Park will conduct sales at about 10 stores and the retailer's warehouse, starting before March 1 and running for about 90 days, Glabman said. He said the event is expected to generate revenues of $10 million to $12 million.
Suppliers include Sealy, Serta, Simmons, Spring Air, Stearns & Foster and local company White Dove.
A Serta spokesman confirmed that the manufacturer was World of Sleep's largest supplier, but would not say how much money Serta is owned. Asked about how the closing will impact Serta's distribution in the area, the spokesman said, "While World of Sleep was a valuable partner … we continue to have strong partnerships in these marketplaces with other retailers."
Glabman said the situation is unusual because Deere Park has permission to bring in additional goods for the sale — a condition normally granted only in certain bankruptcy cases.
World of Sleep, however, didn't file for bankruptcy protection. The secured creditors — White Dove and Firstar Bank — "wanted an expeditious resolution to the debts" and a state court-approved receivership was viewed as quicker and less expensive than a federal bankruptcy case, Glabman said.
Receiver Greenwald said in a news release that he determined that a liquidation "provided the best solution for the secured and unsecured creditors."
-
Carls to shrink in Ch. 11
Jun 8, 2011 -
Robb & Stucky GOB sales begin today
Mar 11, 2011
Featured Company
-
FurnitureCore.com
FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more
VIEW ALL GALLERIES
