Hendricks Furniture to emerge from Chapter 11

Will focus on five North Carolina stores

Clint Engel -- Furniture Today, January 20, 2010

CONOVER, N.C. — Hendricks Furniture Group is expecting to emerge from bankruptcy protection today, trimmed down and focused on its five remaining North Carolina stores.

The Conover-based parent of Boyles Furniture & Rugs and affiliated companies, which filed for Chapter 11 in June, is in court this morning expecting court approval of a plan that already has received the nod from creditors.

"Just seven months after its voluntary filing, the company has improved its capital structure and significantly reduced debts and lease obligations associated with its failed single-line and specialty furniture stores," the retailer said in a release.

"We're grateful to be emerging from this difficult but necessary process," said HFG President Chad Hendricks. "Our company would not have survived without the patience and loyalty of our customers, the commitment of our employees and the support of our industry partners."

The upscale company said its reorganization process, which was managed by its executives and a committee of the company's financial advisors and manufacturing partners, has refocused HFG on its profitable Boyles stores in North Carolina - two in Hickory and one each in High Point, Mocksville and Charlotte. They've operated without interruption "and will soon reflect new products and merchandising made possible by the company's stabilized financials and renewed credit facilities with key financial partners," HFG said.

HFG also operates rug importer and distributor Naja Rugs. A sister company Classic Moving and Storage, also is based in Conover.

In early court documents, the company said it was a victim of overexpansion -including its failed move into dedicated Drexel Heritage and Thomasville stores (since closed or sold off) - and the economic collapse.

"On behalf of our family and our executive team, I would like to thank our customers, partners and vendors for standing by us during this difficult time," Hendricks said.

He added that the company will be embarking "on a new path, refocused on being America's retail leader for well-styled, well-priced home furnishings - and on creating sustainable value for our employees, community and stakeholders."

The company would not disclose expected annual sales going forward. Hendricks was No. 46 on last year's Top 100, ending 2008 with a dozen stores and estimated sales of $140 million.