Winans files for bankruptcy, will close stores
By Clint Engel -- Furniture Today, April 24, 2005
Reno, Nev. — Winans Furniture has filed for bankruptcy and will close its two remaining stores in the Reno area.
The family-owned business, which was facing new competition from R.C. Willey, filed for Chapter 11 bankruptcy protection under the Carson Furniture name, listing assets of $1.3 million and liabilities of about $5.3 million.
Nine furniture suppliers owed about $500,000 are listed among the retailer's top unsecured creditors, led by Mike Cims with a $157,622 claim.
Winans' expansion into Reno and subsequent closing of its Carson City, Nev., store was hurt by severe winter weather this past season, said President Andrew Winans. In addition, Winans' brother and former partner, Scott Winans, left nearly a year ago to join Oskar Huber Furniture of Southampton, Pa.
At the time of the Carson closing, Winans was projecting sales of about $25 million in 2004.
"With the added competition coming here in the fall, I just made the decision that it was the right thing to do," said Andrew Winans about the decision to close the unprofitable business. "Mainly, I concluded we just didn't have the financial footing to continue with that much competition in the marketplace."
Winans hired Planned Furniture Promotions to run the going-out-of-business sales at its remaining Reno and Minden, Nev., stores. Les Diehl, PFP West Coast regional manager, said the sales are expected to start in mid-May and run about 90 days. PFP plans to bring in additional inventory and could generate $8 million to $9 million in volume, he said.
In addition to Mike Cims, industry suppliers listed among its top unsecured creditors are Alpine Furniture, $68,090; Royola Pacific, $66,875; El Ran, $61,236; Sealy Mattress, $47,109; Dynasty Furniture, $43,131; Sunrise Luxury Living Room, $21,588; Restonic/San Francisco, $21,208; and Universal, $17,933.
Andrew Winans and his father James Winans also are listed among the retailer's largest unsecured creditors.
In the midst of its financial struggles, Winans Furniture still made good on its promises to charity. Early last year, the retailer partnered with the Reno Housing Authority, providing $55,000 worth of furniture to low-income home buyers with the help of vendors A-America and Woodmarc.
This year, Winans helped the Salvation Army of Reno after the group's roof collapsed under the weight of heavy snow. Winans donated 45,000 square feet of warehouse space in Sparks, Nev., for storage and processing of donated goods while the roof was repaired.
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Winans Furniture closing 2 Nevada stores
May 1, 2005 -
Winans Furniture closing 2 Nevada stores
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