Carls Furniture seeks approval to exit Chapter 11
September 6, 2012-- Furniture Today,
COCONUT CREEK, Calif. — Carls Furniture is seeking U.S. Bankruptcy Court approval to exit Chapter 11 protection now that its reorganization plan has been approved, its creditors have been paid and all remaining issues have been resolved.
The former Top 100 company, which would emerge with three remaining South Florida stores, asked the court for a "final decree" Aug. 31.
Carls' reorganization plan was confirmed earlier this year and court records show unsecured creditors received 8.5 cents on the dollar.
Carls filed for bankruptcy in May 2011, listing assets of $6.1 million and debts of $9.1 million. A dozen industry-related companies were listed among its 20 largest unsecured creditors and were owed $2.4 million.
In October 2011, Carls CEO Jeff Baker told Furniture/Today the retailer had reached a deal with the unsecured creditors committee that would pay creditors and protect customers who had ordered furniture. He projected the retailer would emerge early this year.
On Wednesday, Baker said a few issues had slowed that process, primarily outstanding payments due to Carls from other parties.
"No customer lost any deposit," Baker said. "They were all honored in full toward the furniture they had purchased. I'm glad we got the court to approve that."