Leath confirms Modernage stores will close
GOB sales to begin Saturday
Clint Engel -- Furniture Today, April 13, 2007
ATLANTA — Leath Furniture will close all seven of its Modernage stores in Florida after going-out-of-business sales that begin Saturday.
“A multitude of factors,” led to the decision, including tough competition, advertising costs and Florida’s poor housing market and skyrocketing insurance costs, said Roy Hester, a Leath investor and vice president of sales for liquidator Planned Furniture Promotions.
PFP has been running “Save our stores survival sale” promotions at all Modernage stores except those in Stuart and Vero Beach, Fla.. The GOB sales will start at six stores Saturday and at the Fort Lauderdale showroom shortly after that, Hester said.
They’re expected to run for 45 to 60 days. Hester would not disclose sales projections. He said PFP will not bring in additional goods for the sales beyond what’s already on the floors and in the warehouse. He also said the properties are being aggressively marketed.
Atlanta-based Leath was acquired by SB Capital Group — a division of Schottenstein Stores — and several PFP executives and Leath management last summer.
The new owners began dismantling Leath’s corporate headquarters last month and have begun running high-impact sales at its 20 Leath stores in Midwestern markets. Sources familiar with the plan have told Furniture/Today that these sales are precursors to liquidations as well, but Hester has declined to comment, saying only that “all possibilities are being considered, including aggressively looking for a purchaser.”
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Leath closing Modernage
Apr 29, 2007 -
Owners confirm Leath will close, liquidate
Jun 3, 2007 -
Leath Furniture confirms entire chain will close
May 17, 2007 -
Leath shutting down Wisconsin stores
May 6, 2007
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