• Larry Thomas

Newport converts case to Chapter 7

JACKSON, Miss. - Upholstery producer Newport Furniture, which filed for Chapter 11 bankruptcy protection in June, has converted its case to a Chapter 7 liquidation proceeding.
     The switch was approved by U.S. Bankruptcy Judge Jason Woodard, who ruled that a Chapter 7 case "is in the best interest of creditors and other parties in interest."
     In his order, Woodard also noted that the Chapter 11 filing was a voluntary action, and no trustee had yet been appointed. The order stated that a Chapter 7 trustee should be appointed "at the earliest practicable time."
     The company, which is based in New Albany, Miss., and has exhibited at the Tupelo Furniture Market, estimated its assets at $1 million to $10 million and liabilities of $10 million to $50 million in the original filing.
     Court documents include a listing of its 20 largest creditors - most of which are suppliers of components and fabrics.
     The largest creditor is a Shanghai-based company called Newport Furniture Co. (China), which is owed $7.17 million.
     Other large creditors include American Global Logistics, which is owed $133,100; Consolidated Fibers, owed $123,785; and L8J products, owed $688,699.
     L8J Products is owned by Larry Jackson, the owner of Sleeper Kraft, a supplier of sleeper mattresses and components. Sleeper Kraft is listed separately as a creditor that is owed $32,421.

Larry ThomasLarry Thomas | News Editor, Furniture Today
lthomas@furnituretoday.com

Hi, I'm Larry Thomas, news editor of Furniture/Today. Since joining the staff in 1989, I’ve written about topics ranging from wicker chairs to proxy battles at public companies. In my new post as news editor, I oversee the news coverage for both the print edition and furnituretoday.com. I look forward to discussing key industry issues in this forum, and I welcome your thoughts and opinions.

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