Berkline Files Chapter 11

May 3, 2011  by in UnCategorized   

By Home Furnishings Business in Bankruptcy on May 4, 2011

Upholstery manufacturer Berkline has filed for Chapter 11 bankrupcty protection so it can liquidate assets.

erkline, a unit of turnaround specialist Sun Capital Partners Inc., ceased operations on the eve of April High Point Market, a unit of  filed so the couch maker that specializes in home theaters can liquidate.

After cutting cost, Berkline and its related companies "have not been able to generate sufficient cash flows to meet their continuing obligations," Keith Cooper, the company's chief restructuring officer, said in court papers.

The company blamed its financial troubles on the housing crisis, which caused a drop in sales.

Berkline has a $140 million, second-lien loan that is mostly owed to its parent, SCSF Furniture LLC and other related companies, according to court records.

Click here for a list of unsecured creditors.