Wickes files for Chapter 11
Owes largest industry creditors more than $23 million
Clint Engel -- Furniture Today, February 4, 2008
WHEELING, Ill. — Wickes Furniture has filed for Chapter 11 bankruptcy protection, owing its largest industry creditors more than $23 million.
The Top 100 company listed Simmons Upholstery (Caye Home Furnishings) as its top industry unsecured creditor with two claims totaling about $3.8 million. Also high on the list was DeCoro, with a $2.1 million claim; Klaussner and its JDI division (care of CIT Group), which together are owed $2 million; and BenchCraft, with two claims totaling $1.5 million.
The filing in U.S. Bankruptcy Court in Delaware follows a failed attempt to get enough vendors to accept a proposal to defer payments on past-due debt until July 2009. It also comes on the heels of rapid expansion but poor sales results last year.
In court documents, the company said if filed for protection “in order to obtain the financial flexibility” to pursue a fast transaction, ranging from sale as a going concern, to an investment in the business, to liquidation.
The 43-store Wickes, founded in 1971, had sales of about $396 million last year, according to court documents. The company had $200 million in gross profit and earnings before interest, taxes, depreciation and amortization of about $800,000, the documents said.
Wickes is the second retailer owned by Sun Capital Partners to teeter in recent weeks. Last week, furnituretoday.com reported that Norcross, Ga.-based Nationwide Mattress and Furniture Warehouse, one of Sun Capital’s first industry acquisitions, was preparing to liquidate. The 39-store, promotional retailer hasn’t returned phone calls, but Great American Group — the liquidator that was called in to handle the going-out-of-business sales — confirmed the plan.
In his affidavit, Wickes Senior Vice President and Chief Financial Officer Richard Clausing said the retailer has been highly leveraged from the time of its purchase by Sun Capital in 2004. The document noted that from 2004 through 2006, Wickes was successful with an aggressive expansion plan endorsed by Sun Capital.
But last year, according to the filing, “macroeconomic factors have negatively impacted performance in the mid-tier consumer and the retail furniture industry, including record gas prices, record home foreclosures, and a significant slowdown in the housing market spurred by a national crisis in the subprime lending markets.”
The effects were exacerbated in August and September by a sharp downturn in the housing market, the document said, noting that several of the retailer’s stores are in areas hit by record foreclosures. That led to a significant drop in sales.
Sun Wickes, one of the company’s investor partners, infused the retailer with money through October. Wickes asked for more funds in December but Sun Wickes wanted the vendor deferral program before it would commit, the document said.
Wickes said it was unable to get the level of vendor participation it needed. “As a result, Sun Wickes advised it would no longer fund the debtors’ operations,” the affidavit said.
Wickes operates stores in greater Chicago, Los Angeles, Portland, Ore., and Las Vegas and employees about 1,459 people.
Despite the trials last year, Wickes forged ahead with expansion, opening two stores in a new market Las Vegas in July and November. Later in November, it opened its 19th Chicagoland store in Bolingbrook, Ill., delivering on a plan to open 10 new stores last year.
Wickes President and CEO John Disa could not be reached for comment. A Sun Capital executive hasn’t returned calls.
Here’s the list of Wickes Holdings’ largest furniture industry creditors and their claim amounts, according to bankruptcy documents:
Simmons Upholstery (Caye Upholstery), two claims totaling about $3.8 million.
DeCoro USA, $2.1 million
BenchCraft, two claims totaling $1.5 million
JDI, care of CIT Group, $1.3 million
Legacy Classic Furniture, $1.2 million
Lane Inds., $1.2 million
Broyhill, $1.1 million
Chateau d’Ax, $893,712
ManWah America, $825,491
Sealy, two claims for Sealy in Atlanta and Chicago, totaling $830,685
Klaussner, care of CIT Group, $703,911
Prime Resources International, $657,064
Jonathan Louis International, care of CIT Group, $614,540
Magnussen Home, $550,971
Hilco Merchant Resources, $550,971
Simmons, $450,109
Peters Revington, $424,658
Universal Bedroom, $398,079
American Bedding, $396,658
Master Design, 387,574
Progressive, $385,436
Oak Furniture West, $362,311
Davis International, $315,692
Stainsafe, $314,494
DeFehr Furniture, $312,648
Chromcraft, $312,020
Lifestyle Enterprise, care of CIT Group, $234,630
Tempur-Pedic, $233,895
Jofran, $226,843
Vignettes, $221,965
SLF, $220,383
Check back with www.furnituretoday.com for updates.
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Corp Greed !!!!!! What comes around goes around
- 2008-21-2 09:18:21 EST -
wicked biache this is for you ,
can you say a little bit crazy
WOW please go get some help WOW OMG..
- 2008-19-2 15:35:54 EST -
I Worked, I Earned, I Worked, I Earned, I Worked, I
Earned, I worked, Drama! Intermission,-------------,
2003, I Took Orders, No Earnings, I Took Orders, No
Earnings, Drama! Pause, What! I''TS A MIS-PRINT, Free
Financing Til 2015. Let the customers know-----------.
I Took Orders, No Earnings, I Took Orders, Drama!
HEY! What Am I Doing Here? I, I, I, No, I Meam, They,
They, They, Call Your Customer. Can you check the
status of my order, Who is your sales consultant.
Distribution Center, yes Hi! I would like to add an
Item to my order for delivery on Saturday. Mr Dist-
ribution Man, Sure! out of stock till 2015. Sat Del.
Mrs Customer calling the store, irrate, spewing Red
Piss from what Looks Like Horns on either side of
her head as she enters the store, Get me the store
Mgr, Where is the store Mgr, I want the store Mgr.
Mr Store Mgr., Ms I Take orders, You have A Customer
At the Front Office, Pause, Mr Store Mgr, Ms I Take
Orders, You Have A Customer at the front office,
second request. phone ringing, ringing, ringing,
answer, hello this is Mr Mgr., How can I help, those
Bleep, and Bleeping Delivery men have tracked up
my Bleeping, floor, and they left trash, the plastic
here in my damn floor, let me give you the number to
service. phone rings, rings, rings, rings, mr Mgr.,
hello this is Mr Mgr., How can I help, I purchased
the three yr warranty six months ago, and there
is a stain that looks like it could be blue berry
stains in my sofa on the right arm and the seat
cushion, mr Mgr when did this happen, Mrs customer
I''m not sure. Mr Mgr., well you need to be exact,
company rules. mrs Customer, you know you don''t
have to be so damn unconcerned, and what in the
Hell are you doing behind a desk in the first
place. "I tell you what" cancel this order and
credit back my credit card A-- ----, or I''m going
to load it up and dump it in the distribution''s
yard, all of it. and you will be hearing from
me. I take orders, no Earnings, what! I owe them
$400.00 dollars on the draw. when the funds are
low and the debts are high, you want to smile, but
you have to sigh, Wickes start scouting cause it''s
time to fry. this is real life, real answers. sad
but true, they''ve "CLEANED" themselves right out of
the loop.
- 2008-10-2 20:25:09 EST -
Well about Wickes of OXNARD true the store manager came from
Robinsons May , she was cleaning dust and puts and ringing people at
minimum wages, A friend of mine not to mention his name broughy
her to Wickes so he can get a $1000 for new hire.
She moved as sales manager "):):):) biggest ( JOKE of Wickes) after
she was about to quite in the sales floor , The store manager liked
her so he promoted her .
He also recommended her to the OXNARD store where she knows
nothing . she can hardly speaks English ,She was told once at the Van
Nuys store go and learn English by a customer while having an
argument with him.
So immagen what Wickes has . 711 Managers , they let all the real
good managers like Mike Miller Go and others and for what they pay ..
You get what you pay for.....
So thats the quality of Natalias and what you get . Hope that she will
get a Job at Robinsons may if they will come back one day. Good
Luck.
- 2008-10-2 18:16:31 EST -
What's the fuss about? Why doesnt Wickes just build another location? Or bring in a new line of furniture?...How about another washed up ex-model.Yeah thats what Wickes needs to get it together, maybe a sofa made of tide-dye that noone can afford this time either. Let them all go now, free the rest of the employee's your just putting the rest of them in the line of fire. You werent being honest now for a long time why should your remainding employees trust that your still gonna pay them? Set them FREE!!!!
- 2008-9-2 17:09:04 EST
Vendors juggle shows
09/06/2009Wickes opens first Las Vegas store in style
07/29/2007Sun Capital acquires Musicland
07/12/2003Sun Capital a rising force in furniture
03/26/2007
