Furniture store American Home files Chapter 11
New Mexico retailer to close 8 of 11 stores
Thomas Russell -- Furniture Today, November 5, 2008
UPDATED ALBUQUERQUE, N.M. — Top 100 retailer American Home plans to close eight of its 11 stores in Arizona and New Mexico as part of a plan to restructure.The Top 100 company listed details of the restructuring in a voluntary Chapter 11 bankruptcy petition filed in the U.S. Bankruptcy Court in the Los Angeles District of California.
Six of the locations slated to close are in Arizona and two are warehouse stores in New Mexico, according to court documents. It will hold going-out-of-business sales conducted by Planned Furniture Promotions at the Arizona stores starting Nov. 15. It also plans to hold store closing sales at the New Mexico locations.
The three stores it plans to keep open are in Santa Fe, Farmington and Albuquerque, N.M.
Formed in 1936, the Albuquerque-based company primarily sells furniture at medium price points as well as some promotionally priced goods and a small amount of upper-end furniture. Furniture and bedding represented about 85% of its estimated $119 million in sales for the fiscal year ended Jan. 26, 2008, according to a declaration filed by CEO Kenton Van Harten.
American Home was listed at No. 61 on Furniture/Today's Top 100 Furniture Stores, based on 2007 sales. It is a division of AFC Acquisition Corp., which has three primary shareholders - Hancock Park Capital III, which has 67.5% equity, Hancock Park Capital II, which has 22.5% equity, and American Home Vice Chairman Lee Blaugrund, who has the remaining 10%.
Its 11 locations cover 550,000 square feet of space and include nine American Home stores and two warehouse stores called American Home Warehouse Plus. It has
674 employees, including 611 full-time and 63 part-time workers. It was not clear how many employees might be affected by the closings.
AFC Acquisition Corp. President and CEO Van Harten was not available for comment. In his court declaration, however, he said, that in September, Wells Fargo Retail Finance terminated AFC's revolving credit facility. That created a liquidity crisis that prevented the company from funding operations, although Wells Fargo and from Hancock Park Capital II and III did make some subsequent loans.
Van Harten added that the company also suffered under the financial strain of burdensome leases at some Arizona locations that kept it from being profitable.
He also attributed the financial difficulties to a weak economy and related sales declines affecting the retail furniture industry.
According to the bankruptcy petition, American Home has estimated liabilities between $1 million and $10 million spread out over 1,000 to 5,000 creditors. It has estimated assets between $10 million and $50 million.
Industry companies listed among the top 20 unsecured creditors of American Home, and the amounts they are owed, include:
Simmons, $659,258
Lane Furniture Inds., $621,149
Sealy, $334,096
Aspen Furniture, $199,847
Hillcraft Furniture, $183,946
Barcalounger-Import, $178,355
Guildcraft Upholstery, $159,210
Flexsteel Inds., $154,085
BJI International, $153,140
American Furniture Mfg., $141,605
Artexport, $136,898
Canyon Furniture Import, $129,656
Thornwood Furniture Mfg., $128,360
Wynwood, $124,743
Talkback
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another one bites the dust,ever been in these stores,layout and display 3rd grade and...
furnicologist - 2008-11-07 17:11:34 -
To all American Home Management employees and Senior Executives affected by your recent Chapter...
David Gelfman - 2008-11-04 11:47:22
