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Carl's Furniture Files Chapter 11
May 24,
2011 by in UnCategorized 
By Home Furnishings Business in on May 25, 2011
Carl's Furniture has filed Chapter 11 bankruptcy protection with the goal of restructuring the company to assure its successful continuing of operations.
Myron Baker and Robert Dragin, the board of directors and founders of the seven-store chain, said the company will close its unprofitable stores in the next 60 to 90 days, and obtain reduced rent on the remaining stores that are continuing in operation. Store closing sales are going on now in Carls Boca Raton, Fla., and Kendall/Pinecrest, Fla., showrooms.
In a release, the company said it had been trying for months to restructure its debt, payables and leases without success. The company plans on honoring all of the customers deposits toward the furniture purchased. Carls requested that all current contracts with customers be honored by the U.S. Bankruptcy Court.
The retailer said the new financing and reduced rent, arranged for concurrently with the bankruptcy filing, will allow Carls to continue operations. The company also hopes to be improve its inventory flow and stock its floor.
Carls largest suppliers are Klaussner, Century, Natuzzi, Sealy, Jonathan Louis, American Drew, Best Home Furnishings and Bernhardt.
Carls currently employs 150 people and plans to keep its remaining profitable stores and the employees that work in them employed. Carls has arranged for Debtor In Possession, DIP, financing to continue operations, subject to landlords executing the agreed upon rent reductions.