American Home to emerge from Chapter 11
Will operate three stores in New Mexico
Clint Engel -- Furniture Today, July 16, 2009
ALBUQUERQUE, N.M. — American Home said Thursday it will emerge from Chapter 11 bankruptcy protection later this year with three remaining New Mexico stores.A bankruptcy court judge is expected to sign the order allowing emergence in the next few days, and the retailer would officially emerge about 40 days after that, said Ted Leveque, chief operating officer.
Under the plans, unsecured creditors will be paid $1.3 million - $500,000 up front and the rest in quarterly installments for two years. Additional payments could be made to unsecured creditors, based on the retailer's performance, Leveque said.
American Home projects it will have sales of $30 million to $31 million in its first 12 months out of court protection, he said.
The retailer filed for bankruptcy in November, owing its largest industry creditors just over $3.3 million, according to the petition. The company had 12 stores in 2007 and nine stores during most of 2008 doing an estimated $85 million sales through the fiscal year ended Jan. 31, 2009.
After the bankruptcy filing, it liquidated the majority of its stores, including all six Arizona units
American Home's remaining New Mexico showrooms are the 100,000-square-foot flagship in Albuquerque, a 40,000-square-foot store in Santa Fe and an 80,000-square-foot store in Farmington, N.M.
Kenton Van Harten, a partner in American Home owner Hancock Park & Associates, remains president and CEO.
Leveque said American Home will be "the first furniture retailer in most recent history to emerge" from Chapter 11 rather than ultimately be liquidated or sold.
"Our company has undergone many changes and we will emerge stronger and better positioned to continue our 70-plus year heritage in serving the New Mexico market," he said.
"We are very excited about the opportunity we have and we thank our vendors, our employees and the community," he added. "Without their support, this wouldn't have happened."
-
American Home emerges from Chapter 11
Mar 23, 2010 -
American Home to emerge from Chapter 11
Jul 20, 2009 -
UPDATE: Treasures Furniture to close San Diego store
May 18, 2012
VIEW ALL GALLERIES
