American Pacific closing its doors
Brian Carroll -- Furniture Today, December 15, 2008
San Francisco – Today is the last day of business of 24-year-old American Pacific Enterprises.
Tomorrow, an assignee of the company’s creditor will be appointed to conduct an Assignment of Benefits of Creditors liquidation, according to Kaela Forker, co-ceo. An ABC liquidation is an alternative under California law to a Chapter 7 liquidation.
American Pacific’s distribution center outside of Columbus, Ohio, will resume business as the company sells off inventory, then will close, she said.
American Pacific’s offices in India, China and Pakistan have also closed, as has its San Francisco office.
“Assets are primarily what’s left at this point – although I would argue our greatest assets were always our people,” said Forker, who spent 16 years with the company before assuming her current position 10 months ago.
American Pacific is expected to finish out the year with sales of $120 million to $125 million, she said. Because of legal constraints, Forker could not discuss the causes of the company’s woes, nor could she comment on the impact of Linens ’n Things’ liquidation on American Pacific’s fate. LNT was long a significant customer for the supplier.
American Pacific was founded as a trading company in 1984 importing quilts. Over time it became one of the first of a generation of companies that forged networks of global manufacturers in multiple countries. The company also expanded into fashion bedding, sheets, window treatments, window hardware, shower curtains, coordinate towels and bath accessories.
Earlier in this decade, as volume retailers began shifting their focus to in-house brands and licensed exclusives, American Pacific was a significant player in the strategy, landing key specialty store and mid-tier licenses such as Nautica, Liz Claiborne, Villager and Dockers.
The founding Block family sold a controlling stake to Genstar Capital in 2004.
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