Billy Bob's scaling back to 2 or 3 stores
By Clint Engel -- Furniture Today, March 14, 2004
Royal Oak, Mich. — Royal Oak, Mich.— Billy Bob's Gameroom Furnishings, which last year had big plans to expand into Florida, now intends to scale back to two or three metro Detroit stores in a bid to emerge from Chapter 11 bankruptcy protection.
The five-store small office/ home office pioneer filed for Chapter 11 last month, listing assets of $1 million to $10 million and debts of $10 million to $50 million, according to court documents. Its 20 largest unsecured creditors include nine furniture suppliers owed nearly $1.2 million.
Billy Bob's owner and President Bob Seroka did not return phone calls, but leaders of three of the largest furniture creditors said he has indicated plans to cut back to two to three Detroit-area stores after a special sale. The three vendors plan to support him with furniture shipments.
"We were under the impression he was doing much better," said Ken Whalen, owner of Golden Oak, Billy Bob's largest unsecured creditor, which is owed more than $351,000, according to documents.
"He was having a tough time for the last couple of years, but seemed to be improving," Whalen said. "He's a good guy. It's too bad because they were definitely putting their energy into it."
Whalen, along with Creative Ideas owner Steve Balsamo and Orman Grubb President Jeff Grubb, wouldn't disclose the terms under which shipments will continue.
In a press release, Billy Bob's said it "was unable to obtain new (financing) or renew bank financing" and will close unprofitable stores, reduce overhead and restructure with possible interim financing.
"Our goal is to continue to service all of our valued customers during this difficult period in our business, and all orders will be filled," the release said.
Seroka said in March 2003 his company would open six large-format stores in South Florida starting that summer. Billy Bob's later modified that plan to reflect soft business, saying in July it had rolled out a scaled-down format at the original Royal Oak location, and that this would be the model for expansion in South Florida and Michigan.
The plan evolved into opening a Fort Lauderdale store, with an eye on licensing the concept to other retailers. "Somebody could come in and get started with an investment of $500,000," Seroka said.
In additional to Golden Oak, industry creditors and their unsecured claims are Hippopotamus, $230,149; Creative Ideas, $184,748; Orman Grubb, $156,532; Imperial International, $100,696; Aspen Furniture, $52,349; Minson, parent of Mallin Casual and Pastel, $34,431; Beach Mfg., $32,088; and Legends Furniture, $26,706.
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