Court to hear Rosa's GOB Sale Request Dec. 21
Furniture Today Staff -- Furniture Today, December 23, 2010
CHEEKTOWAGA, N.Y. - Rosa's Home Stores, which filed for Chapter 11 bankruptcy protection earlier this month, has asked a U.S. Bankruptcy Court judge for permission to begin a going-out-of-business sale.
After the company initially filed, Dean Rallo, president of the five-store Rosa's, told Furniture/Today he planned to continue operating all stores. However, court documents show the retailer entered into an agreement prior to the bankruptcy filing with Planned Furniture Promotions for the liquidation of inventory and fulfillment of "certain pending customer orders."
"The purpose of the debtor's Chapter 11 filing is to wind down the debtor's operations in a controlled and orderly fashion for the benefit of its creditors and to complete as many customer orders as possible," the document said.
Furniture and bedding sources among Rosa's 20 largest unsecured creditors are owed about $977,000.
Judge Michael Kaplan has scheduled a hearing on the GOB sale motion for Dec. 21.
Rosa's operates five stores in the Buffalo and Niagara Falls, N.Y., markets that sell furniture, appliances and consumer electronics.
In court filings, the company said revenue has declined significantly since early 2009 due to increased competition and a sustained downturn in the economy in western New York state.
Court documents show the company had a pretax loss of $1.07 million in the nine months ended Sept. 30.
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Rosa's Home Stores of New York in Chapter 11
Dec 10, 2010
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