Domain looking to restructure
Retailer asking vendors, others to take equity positions
Clint Engel -- Furniture Today, January 18, 2008
NORWOOD, Mass. — Domain Home has run into financial difficulties and is expected to attempt to restructure under a Chapter 11 bankruptcy reorganization, industry sources have told Furniture/Today.
The 27-store Top 100 company also eliminated about 20 corporate jobs this week as part of an effort to scale down its operations. Sources, who asked not to be identified, say the Chapter 11 filing could come late this week or next week.
Domain Founder and CEO Judy George is working on getting vendors and other interested parties to take equity positions in a scaled-down Domain, sources said. In a written statement, Domain said, “The company is actively exploring a range of strategic alternatives. We will make further disclosures as appropriate.”
The retailer is ranked No. 93 on Furniture/Today’s Top 100 with estimated furniture, bedding and accessories sales of $66.3 million in 2006 at 29 stores in Massachusetts, metro Baltimore and Washington, New Jersey, New York, Connecticut and Pennsylvania. Total revenues were estimated at $71.3 million.
In June, Synergy Enterprises LLC acquired a majority stake in the upscale Norwood-based retailer from its former partner Aga Foodservice, which retained a 15% equity interest. The purchase price was not disclosed.
George, who had sold her interest in the company earlier but remained its leader, regained a stake of about 10% at the time of the sale. Golden Acquisition LLC, a Hudson Capital Partners company, also took a minority stake.
Through a spokesman, Synergy declined to comment. Golden managing partner James Schaye and George also declined to comment.
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Domain looks to restructure
Jan 20, 2008
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