Troubled Bay seeks buyer
By Clint Engel -- Furniture Today, May 22, 2006
Homewood, Ill. — Struggling retailer Bay Furniture will conduct a cash-raising sale this month as it looks for a buyer. If that doesn't succeed, the Top 100 Chicagoland company would be liquidated, according to its owners.
The midpriced retailer, co-owned by brothers Rick and Larry Slovy and their father, Barry Slovy, has six stores in Illinois and Indiana.
Management advisory firm Rally Capital Services of Chicago has been brought in to lead the company. Rally has hired liquidator Great American Group to run the sales. The stores were closed for inventory and reopened last week, said Howard Samuels, Rally Capital co-founder.
Great American President Jeff Yellen said the sale would run four to six weeks. "We will attempt to fill all existing customer orders on Great American's credit line," he said.
The moves don't involve four Ashley Furniture HomeStores in the Chicago market that are owned by the Slovy family and operated as a separate company.
Said Larry Slovy, "We just got in a little over our heads. With business conditions the way they are, it's gotten tough doing business."
He said there are no plans to file for bankruptcy protection.
Samuels of Rally Capital said his fiduciary responsibility is to the Bay creditors. He said the stores will remain open and that the goal is to sell Bay as a going concern, ensuring the highest return on its assets.
Bay, which has operated in Chicago for more than 70 years, has been hurt by factors including increased competition and "a demonstrative change of customer preferences for design and service in connection with major furniture purchases," Samuels said in an e-mailed release.
The results have been a decline in sales and "continuing operating losses for more than two years," the e-mail said.
Samuels added that he's in discussions with a third party for Bay's Homewood real estate, which includes its headquarters and a store.
Bay's other stores are in Fox Valley, Hoffman Estates, Lake Zurich and Mokena, Ill., and Merrillville, Ind. The company was ranked No. 97 on Furniture/Today's latest survey of Top 100 U.S. Furniture Stores, with estimated furniture, bedding and accessories sales of $63.2 million in 2004.
