All Leath stores put up for immediate sublease
By Furniture Today Staff -- Furniture Today, May 14, 2007
Atlanta — The owners of Leath Furniture appear ready to shutter the entire Midwestern chain of 18 stores.
According to an e-mail marketing piece sent last week from Julius M. Feinblum Real Estate, all 19 Leath locations (including one already closed) in Illinois, Michigan, Indiana, Iowa and Wisconsin are "available immediately" for sublease.
Feinblum Chief Financial Officer Fred Feinblum said the real estate firm was hired to market the properties by Leath's owners.
He said interest has been strong, and that about 40% to 50% of the locations are expected to remain in the industry.
Atlanta-based Leath, which also owns seven Modernage stores in Florida, was acquired last summer by SB Capital Group, a division of Schottenstein Stores, and by several Planned Furniture Promotions executives and Leath management.
Last month, the Top 100 company said it was closing all seven Modernage stores, citing tough competition and a weak business climate, and began going-out-of-business sales.
It also has announced GOB sales for the two remaining Wisconsin Leath stores. A third store in the state has already closed.
Roy Hester, a Leath investor and vice president of sales for liquidator PFP, has said that "all possibilities are being considered" for the Leath chain, including finding a buyer.
He couldn't be reached for comment for this story.
Feinblum said most of the properties the firm is marketing are leased, but four are owned by the retailer — in Dubuque, Iowa; Benton Harbor, Mich.; and Galesburg and Springfield, Ill.
