Robb & Stucky in Chapter 11

February 19, 2011  by in UnCategorized   

By Home Furnishings Business in Bankruptcy on February 20, 2011

High-end furniture retailer Robb & Stucky Limited announced Friday that the home furnishings store has filed Chapter 11 bankruptcy in Florida.

The action in the U.S. Bankruptcy Court Middle District of Florida, Tampa Division, keeps Fort Myers, Fla.-based Robb & Stucky's doors open pending a sale of assets.

"At this time, we are focused on charting a path that will lead us into the future," said Dan Lubner, Robb & Stucky's president of the Hospitality Design Division. "We are endeavoring to locate a buyer that will maintain the company's brand standards, associates team and strong focus on customer needs and service, with minimal impact on operations and stakeholders."

The company has entered Chapter 11 seeking the approval of an agency agreement for the sale of its assets, subject to the receipt of higher or better offers, including offers to acquire the company as a going concern. As part of the court process, the Company said that it is required to entertain all potential offers that will maximize value for interested parties, including liquidation bids.

In a press release, Robb & Stucky acknowledged difficulties "from the challenges that have affected many real estate derivative industries since summer 2007. The home furnishing industry has been among the hardest hit by the significant decrease in consumer spending."

The furniture retailer's stores remain open it navigates the sale process, and it has secured commitments for debtor in possession financing that will be used to fund operations pending the transaction. As part of the filing, the company sought emergency relief from the Court authorizing uninterrupted payment of employee wages and benefits and for the continuation of customer programs.

Founded in 1915 in Florida, Robb & Stucky has retail furniture showrooms in Florida, Texas, Arizona and Nevada.