UPDATE: Companies related to Florida furniture store Hudson's in Chapter 11
Owner says filing isn't related to furniture business
Clint Engel -- Furniture Today, October 22, 2009
SANFORD, Fla. — The founder of Top 100 company Hudson's here has filed for Chapter 11 bankruptcy protection, through ownership of companies related to four of his Florida stores.
But President Fred Hudson told Furniture/Today the filings were real-estate related and have nothing to do with 15-store Hudson's Furniture Showrooms.
Four entities owned by Fred Hudson - limited liability companies that are landlords for stores in Tampa, Brandon, Ocoee and Altamonte Springs, Fla. - filed for bankruptcy Oct. 13. According to case summaries, Hudson's was hurt by the economy and hasn't been able to pay the landlords for more than six months.
That led the landlord companies to default on mortgages to Park National Bank, which began foreclosure actions Aug. 1. Court records show the bank is owed about $12.8 million. Fred Hudson is sole member of the four limited liability companies, the documents said.
An attorney for the debtors told the Orlando Sentinel the bankruptcies were filed to restructure debt while keeping the stores open.
Fred Hudson told Furniture/Today this was a "property deal" that "has absolutely nothing to do with Hudson's furniture." He declined further comment.
Hudson's is No. 89 on Furniture/Today's Top 100 with an estimated $58 million in sales at 24 stores in 2008, including five Ashley Furniture HomeStores in North Carolina that it operates with a partner. Earlier this year, it closed its four Georgia Hudson's stores.
Click here to read the Orlando Sentinel story.
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