Flack Interiors of Texas files for Chapter 11
By Clint Engel -- Furniture Today, July 19, 2004
San Antonio — Flack Interiors here has filed for Chapter 11 bankruptcy protection, indicating it owes its top home furnishings creditors nearly $1.4 million.
The Texas retailer, with three stores operating as Dianne Flack Furniture, Diane Flack Furniture Warehouse and Thomasville Home Furnishings by Dianne Flack, said it had $0 to $50,000 in assets and more than $3 million in debts.
Fifteen home furnishings companies are listed among its 20 largest unsecured creditors, led by Thomasville Furniture Inds., which has a $354,582 unsecured claim, according to court documents. It's possible that part or all of that claim could turn out to be secured.
The retailer is not connected with Hilda Flack Interiors, which operates Hilda Flack Interiors in Palm Beach Gardens, Fla., and Flack's Interiors and two Drexel Heritage stores in metro Atlanta.
Kimberly Kennedy, president of Dianne Flack in Texas, didn't return telephone calls.
Dave Carpenter, director of financial services for La-Z-Boy's Greensboro, N.C., location, said, "We had orders on creditor hold, exchanging shipments for dollars for the past six months."
La-Z-Boy's American Drew is listed among the 20 largest creditors with a $39,385 claim.
Other industry creditors and their unsecured claims include LeatherTrend, $236,784; Palliser, $146,389; Universal, $139,735; Sigla, $83,817; Harbor Home, $63,428; Lane, $61,193; Alf, $49,479; El Ran, $39,107; Eastman House, $38,548; Ara Collection, $36,875; Allusions/Lam Lee, $36,875; King Koil, $36,588; and Progressive's Woodlands division, $28,795.
In a court motion, the retailer said Larry Flack is believed to be a secured creditor, and Thomasville has a lien for about $350,000, "which may be secured, in whole or in part, by assets."
Michael Colvard, an attorney representing the retailer, said Larry Flack is the landlord for one of the stores.
Thomasville Executive Vice President and Chief Financial Officer Paul Dascoli said his company still is gathering information on the case and declined to elaborate.
Dianne Flack Furniture was listed a year ago in Furniture/ Today's Beyond the Top 100 report with five stores and 2002 sales estimated at $28.7 million.
The company's Web site lists four locations, but Colvard said the retailer currently has three stores and that Dianne Flack Leather Gallery closed some time ago. He also said the petition and claims are preliminary and subject to revision.
