San Antonio retailer enters Chapter 11, plans GOB sale
Jay McIntosh -- Furniture Today, June 7, 2010
SAN ANTONIO - Furniture Factory Warehouse has filed for Chapter 11 bankruptcy protection and will conduct liquidation sales at its 12 stores in south Texas, the company announced last week.
Paul Thompson, a company manager, said the decision to liquidate was a result of "unfavorable financial conditions, including a sustained decline in furniture sales."
The company said the stores were closed temporarily but will reopen for going-out-of-business sales conducted by Planned Furniture Promotions, subject to bankruptcy court approval. Furniture Factory Warehouse, based here, has stores in San Antonio, Killeen, McAllen, Corpus Christi, Harlingen, Brownsville and El Paso, Texas.
It had operated a 13th store but closed it before the bankruptcy filing.
The retailer's approximate annual sales were in the $26 million to $30 million range, a Planned Furniture Promotions official said.
The retailer has been in business for about 21 years. It was operated by the Giles Group until it was sold about two years ago to a newly formed parent company, Dallas-based FFW OPCO Ltd.
In a statement, Thompson acknowledged the company's employees and loyal patrons.
He said the company chose Planned Furniture Promotions as a "highly experienced and reputable partner" in the liquidation process, and said he believed the sale would result in the best possible outcome for secured and unsecured creditors.
In its Chapter 11 filing in U.S. Bankruptcy Court for the Northern District of Texas, the company lists both assets and liabilities in the $1 million to $10 million range.
Industry companies listed among the company's 20 largest creditors include American Furniture Mfg., with a claim of $399,031; Ashley Furniture Inds., $254,073; Taylor Bedding, $242,556; Corinthian, $119,162; Pinnacle Sleep Products, $90,508; Trade Master, $90,002; Serta Mattress, $76,725; New Classic, $69,291; Standard Furniture, $65,489; Designs Unlimited, $54,683; and Harden Mfg., $45,304.