Ohio retailer Designer Furniture Warehouse files chapter 11
Clint Engel -- Furniture Today, November 18, 2013
COLUMBUS, Ohio — Designer Furniture Warehouse here has filed for Chapter 11 bankruptcy protection with plans to close all but one of its 11 stores.
In its petition filed Nov. 13, the retailer listed assets and debts both in the $1 million to $10 million range.
Ashley Furniture is No.2 on the list of largest unsecured creditors, with the largest industry claim of $220,224.
According to a release, DFW has asked the court for approval of going out-of-business sales at nine of its 11 stores, which are in Ohio, Pennsylvania and West Virginia. The one West Virginia store in Huntington is not included in the liquidation but will be permanently closed. Planned Furniture Promotions would manage the liquidation sales.
DFW's Columbus, store will continue to operate under the retailer's management.
Tom Liddell, PFP senior vice president, said that in an unusual move, secured creditors have agreed to a "carve out" of money to ensure existing customer orders are fulfilled.
That's a refreshing change from several industry bankruptcies in recent years, in which consumers were left with no furniture despite having put down deposits prior to the filings, he said.
"That's not going to be the case here," Liddell said. "The way it's structured, customers are going to get their furniture."
In the release, DFW President Charles Kidder said this was an important aspect of the filing.
"DFW Furniture wanted this bankruptcy to have as little negative impact on our loyal customers as possible, so we worked very closely with our legal team and the bankruptcy court to put our customers first," he said.
Kidder could not be reach immediately for comment on the reasons for the filing or the retailer's long-term plans in Columbus.
If the liquidation is approved by the court, the sales would probably begin in the second or third week of December, Liddell said.
Other industry suppliers listed among DFW's largest unsecured creditors and their claims are Vaughan-Bassett, $42,729; Jackson/Catnapper, $41,170; Simmons, $34,093; Five Star, $31,130; Woodcrest Sales, $21,124; and Carolina Mattress Guild, $20,119.
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