UPDATE: California retailer Treasures Furniture in Chapter 11
Clint Engel -- Furniture Today, May 11, 2012
SAN DIEGO — High-end retailer Treasures Furniture has filed for Chapter 11 bankruptcy protection, owing its largest creditors in the industry about $2.1 million, according to a court document.
The retailer, led by CEO Alan Glass, with stores listed online in San Diego and Irvine, Calif., and San Jose del Cabo, Mexico, filed for protection in the Southern District of California Tuesday, listing assets and debts both in the $1 million to $10 million range.
Fourteen of its 20 largest unsecured creditors are home furnishings related, and Furniture Brands International companies appears to be the largest among the group, with combined claims listed of more than $1.4 million. But the supplier indicated this is a bit misleading.
"We have not been doing business with Treasures for more than two years," a Furniture Brands spokesperson said in a statement. "In 2011, we received a judgment against Treasures for the amounts they owed us. These amounts are old debts that have been written off. This will have no impact on our financial statements."
Glass did not immediately return calls for comment about the filing and the retailer's reorganization plans.
Once a Top 100 furniture store, the upscale Treasures was gearing up for growth in 2004. Back then, Glass had said the company was experiencing success with new Furniture Brands dedicated stores and was planning to roll out several more. But the rollout never materialized and Glass ended up closing some stores and sticking to a multi-brand format.
Industry creditors and their unsecured claims listed in the petition are:
Lane Upholstery, $468,809
Lane Acceptance Group, $319,395
Marge Carson, $147,731
Home Furnishings Inc. of San Diego, $139,781
Drexel Heritage, $138,978
Lane Home Furnishings Retail, $101,849
Rare Collections, $62,851
Hooker Furniture, $58,267
Mavati's Furniture, $48,167
Ital Art, $46,998
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