Heilig-Meyers is still with us
The recent news that Richmond, Va.’s The RoomStore, once part of the Heilig-Meyers chain, could become a publicly traded company sent us scouring through the voluminous U.S. Bankruptcy Court files in Richmond to see exactly what had become of once-mighty Heilig and its more than $900 million in claims from unsecured creditors.
With valuable assists from Furniture/Today’s sharp-eyed research department and Senior Retail Editor Clint Engel, who covered the Heilig-Myers mess when it unfolded in the summer of 2000 and lived to tell about it, I was somewhat surprised to discover that Heilig-Meyers still exists.
But it’s only on paper — in the form of a liquidation trust that was formed in February 2006 to liquidate the company’s remaining assets and distribute proceeds to creditors. (It took nearly six years to get to that point because of protracted legal battles involving Heilig-Meyers and its lenders.)
Since 2006, the trust has quietly and methodically gone about its work. In early 2008, checks totaling more than $16 million were sent to unsecured creditors.
Granted, that represented only 1.5% to 2% of the total amount each creditor was owed, but most had given up hope of getting anything from Heilig-Meyers by that time.
Curiously, the trust’s most recent court filing on March 19 notes that 226 creditors never cashed their checks, so their claims were voided 90 days after the checks were issued.
That money from those uncashed checks (perhaps the recipients mounted them on the wall for posterity) eventually will be redistributed to those who did cash their checks from the first distribution.
But alas, it could be awhile before any more checks are in the mail. The court filing notes that “the trust is unable to determine when a final distribution … will occur.”
Perhaps the trustees are aiming for the 10th anniversary of the bankruptcy filing
Mike commented:
Just opened the envelope containing a stock certificate representing the amount ( ? ) owed me after seperation at liquidation. This was like waiting 9 years on a box of Cracker Jacks and upon opening finding not a toy...just a piece of paper that is "worthless" . One can only hope that those who made promises that affected so many will be forgiven on Judgement Day.
former credit mgr commented:
the problem with heilig was they had all these fat cats in richmond wanting sales and we had to get them anyway we could. the motto was if they could fog up a mirror give them credit and that's what we had to do so now where are we today? with nothing thanks derusha i hope you are having a phamonal year
Sonya commented:
I too worked for Heilig-Meyers and am trying to find out about the 401-K. If anyone finds out anything please let me know! skbolin@windstream.net
Bruce commented:
As an X long time employee, I can tell you that the creditors were not the only ones that got screwed by this company. I'm sure Derusha and Perry got a nice parachute though, as well as their top ranking flunkies.
Robert commented:
I bought living room furniture from them in 1999 and I still have them and it's the best furniture I've ever owned.
Mrs. Walker commented:
My Husband worked for Heilig in Dayton Ohio he has since Passed away in 2006 i cant get any info on anything about stock or 401-k please need help finding phn# or e- mail addresses - Thank You
La Monte L. Ramsey commented:
Larry, I am an ex-employee of Heilig Meyers. I am trying to get some information on who the third party company that was handling our 401k. Hope that you can help me with this. Any information you may have please contact me by email - Qllramsey@hotmail.com. Thanks
Beverly Atlanta, Ga commented:
where are the checks and when will they be mailed,for the employees who invested all their savings in the 401k plans (heilig-Meyer stock) I can assure you they have not been mailed yet.
Jerome J.Neff commented:
Where's the promised download of the near "top 100"?
Jacksonville Jim commented:
Larry,
I wonder how much the checks totaled that the bankruptcy attorneys cashed, or maybe they didn't cash their checks either!
