LisaW
Time for me to FLY!
Member since 5/05 13199 total posts
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Did I ever tell you that I hate people?
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Re: Anyone get furniture recently from Levitz?
I wouldn't, especially now. They just filed for bankruptcy again. Most of the major vendors stopped shipping to them.
Levitz seeks Chapter 11 protection
Bankruptcy filing is third in 10 years
NEW YORK — Levitz Furniture filed for bankruptcy protection Thursday for the third time in 10 years, but says it intends to remain in business.
In a Chapter 11 petition filed in U.S. Bankruptcy Court here, the troubled retailer says it owes more than $25 million to its 16 largest furniture vendors.
“We are hopeful this filing will enable the business to emerge stronger and better positioned for long-term success,” said Larry Zigerelli, Chairman and CEO of Levitz Furniture. “We have an exceptional group of people at Levitz who have made great strides to improve our business during a challenging period for our entire industry.”
Levitz said the filing became necessary because it had insufficient liquidity to support its operations. The 76-store company said it will evaluate options including a sale or identifying new financial investment, and has the consent of its lenders to use funds to continue to operate its business.
The largest unsecured creditor, Legacy Classic, is owed $3.37 million, and five others are owed more than $2 million.
Financial and other sources said the retailer had burned through cash since it was bought out of bankruptcy two years ago by Prentice Capital Management and liquidator Great American Group. Investment firms have made at least two cash infusions in the company this year.
In addition to Legacy Classic, other large unsecured furniture industry creditors include Collezione Europa, owed $2.95 million; Klaussner, owed $2.72 million; Prime Resources, owed $2.49 million; Haining Mengnu Group, owed $2.31 million; and Tongxiang Shouwang Leather, owed $2.3 million.
Also, Samuel Lawrence, owed $1.86 million; Sealy, $1.46 million; DeCoro, $970,000; Riversedge, $882,752; Magnussen Home, $776,516; Home Delivery, $763,014; Yue Sen, $731,158; Haining Nice Harvest Furniture, $719,082; Serta, $717,270; Steve Silver, $699,207; and Chaki Co. Ltd., $456,854.
The Levitz chain, under other corporate names, filed for bankruptcy in September 1997 and then again in October 2005, owing its largest industry creditors nearly $90 million over the two filings. Some, including Klaussner, Douglas, Universal and Palliser, were stung both times.
The Top 100 retailer, once the largest U.S. furniture store chain with more than $1 billion in sales in 1994 and again in 1995, operates stores in greater New York, Los Angeles, northern California, Seattle, Phoenix, Las Vegas and Portland, Ore. Furniture/Today estimated its sales in 2006 at $480 million, down 20% from the year before.
Zigerelli took the helm in January, replacing Chairman Elliott Wahle and CEO Tom Baumlin, who began revitalization efforts upon Prentice’s acquisition of Levitz out of bankruptcy in December 2005. (Great American’s stake in the acquisition was in running the going-out-of-business sales for some 27 Levitz and Seaman’s units.)
Message edited 11/13/2007 5:23:57 AM.
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