Domain looks to restructure
Retailer asking vendors, others to take equity positions
By Clint Engel -- Furniture Today, January 20, 2008
Norwood, Mass. — Domain Home has run into financial difficulties and will 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 last week as part of a move to scale down its operations. Sources, who asked not to be identified, say the Chapter 11 filing could come this week. Check www.furnituretoday.com for updates.
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. One source said Domain is hoping to slim down to about 15 stores.
Last June, when investment and management advisory firm Synergy Enterprises acquired a majority stake in the retailer from Aga Foodservice Group, Domain officials said there were plans to add 15 stores over the next three years. Instead, the company appears to be rocked by the same tough business climate affecting the retailers nationwide.
Domain 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 a written statement last week, Domain said, "The company is actively exploring a range of strategic alternatives. We will make further disclosures as appropriate."
The purchase price of the June acquisition by Synergy was not disclosed. Under that sale, Aga Foodservice retained a 15% equity interest. George, who had sold her interest in the company earlier but remained its leader, regained a stake at the time of the sale, and 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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