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Group pays $12.9M for Sofa Express liquidation rights

Sale expected to begin Dec. 22

Heath E. Combs -- Furniture Today, December 21, 2007

NASHVILLE, Tenn. — A group of bidders that included Hilco, SB Capital and Planned Furniture Promotions won rights to the Sofa Express liquidation, including fixed assets, inventory and leasing rights, at a bankruptcy hearing here that concluded early this morning.

Sources involved in the hearings said that the group paid $12.9 million for liquidation rights to Sofa Express, which was owned by Klaussner.

That total includes inventory with a cost value of $14.7 million and leases for 42 locations. Sofa Express has the right to sell two company-owned properties.

Bidding was done by three groups. Other bidders included the joint venture between Great American Group, Hudson Capital and Julius M. Feinblum Real Estate, and stalking horse bidder Gordon Bros. and DJM Realty. Negotiations lasted until about 4.15 a.m., said a source involved in the talks.

The hearing is pending court approval Dec. 21. Liquidation starts Dec. 22 and is expected to continue until April.

Sofa Express filed for Chapter 11 bankruptcy protection Dec. 6 in the Middle District of Tennessee.

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