RoomStore to close 10 stores in North Texas
04/03/2012 9:34 AM
04/03/2012 12:01 PM
RoomStore Inc., a 63-store furniture retailer that filed for Chapter 11 bankruptcy reorganization in December, has decided to close 10 stores in the Dallas-Fort Worth area.
Immediately after filing for bankruptcy, RoomStore hired liquidators and conducted going-out-of-business sales at 18 locations. The company itself closed seven others.
If the bankruptcy court in Richmond, Va., agrees with the proposed timetable, liquidators will be required to submit initial bids on April 6, in anticipation of an April 9 auction. A hearing to approve the sales and the selection of the liquidators will take place April 10.
Area locations include Arlington, Fort Worth, Grapevine and Denton.
When the Chapter 11 case began, RoomStore said it might shutter 15 more by January.
Assets are $55.98 million, with debt totaling $52.5 million, according to RoomStore's petition. The company was in Chapter 11 before.
The chain's stores in eight states generated sales of $138 million in the first half of 2011, resulting in a $7.4 million loss from operations and a $7.7 million net loss. For the fiscal year ended Feb. 28, the net loss was $12.7 million on sales of $323.4 million.
RoomStore owns 65 percent of Mattress Discounters Group LLC, which it purchased out of bankruptcy in late 2008. Mattress Discounters, a bedding retailer, has 79 stores in five states. It is not in bankruptcy.
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