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Furniture Factory Warehouse Files for Chapter 11 Bankruptcy
June 1,
2010 by in UnCategorized 
By Home Furnishings Business in Bankruptcy on June 2, 2010
San Antonio-based home furnishings retailer Furniture Factory Warehouse, which operates 12 stores in South Texas, has filed for Chapter 11 Bankruptcy protection in the United States Bankruptcy Court for the Northern District of Texas.
The retailer expects its stores and distribution facilities to remain closed pending the Court's approval of Furniture Factory Warehouse's "Bankruptcy Going Out of Business Sale." The company's decision comes as a result of unfavorable financial conditions, including a sustained decline in furniture sales, according to Paul Thompson, one of the company's managers.
As part of its plan to liquidate inventories, the retailer selected national furniture liquidation firm Planned Furniture Promotions Inc. to run the bankruptcy liquidation sale, subject to bandruptcy court approval.
"After extensive investigation and careful consideration, we chose Planned Furniture Promotions," said Thompson. "It is important for us to work with a highly experienced and reputable partner in the store liquidation process. Planned Furniture Promotions is committed to the bankruptcy liquidation sale and we believe that the sale will result in the best possible outcome for all our creditors, both secured and unsecured."
PFP will conduct the Bankruptcy Going Out of Business Sale at the companys 12 locations in San Antonio, Killeen, McAllen, Corpus Christi, Harlingen, Brownsville and El Paso.
Tom Liddell, vice president of sales and marketing at Planned Furniture Promotions said that many of the retailer's staff would be retained during the liquidation sale.