Pittsburgh furniture retailer Roomful Express to liquidate

Debt-burdened company placed in receivership

Heath E. Combs -- Furniture Today, December 7, 2010

PITTSBURGH — Furniture retailer Roomful Express said today that it has been placed in receivership due to its inability to meet its financial obligations and will soon start a going-out-of-business sale.

Compass Advisory Partners, a Pittsburgh-based management consulting firm, was named receiver in the Court of Common Pleas in Allegheny County to manage the disposition of assets and inventory, a company press release said.

The retailer said last week it was negotiating with senior lenders to resolve a judgment filed against it for an $18 million debt payment.

GOB sales will start during the next few weeks with Gordon Bros. Retail Partners Group assisting with the closeout process, a press release said.

All of the company's 13 locations will remain open for the GOB sales.

The retailer has 10 Roomful Express stores in Pennsylvania and one is in St. Clairsville, Ohio, and two Ashley Furniture HomeStores in the Johnstown-Altoona market.

The Pittsburgh-based retailer, owned by R.H. Kuhn Co., has had double-digit revenue declines this year, the press release said.

"Lower housing starts and a poor credit environment have been significant factors in the decline of consumer confidence when it comes to purchasing furniture and larger ticket household items," the company said.

Roomful Express was ranked No. 63 on Furniture/Today's latest Top 100 U.S. Furniture Stores list, with estimated furniture, bedding and accessories sales of $78.9 million and total revenue of $81.7 million in 2009.