Rowe Seeks Time For Chapter 11 Plan

January 3, 2007  by in UnCategorized   

By Home Furnishings Business in on January 2007 With a bankruptcy auction looming, management at Rowe Cos. has asked a Bankruptcy Court judge for more time to develop a plan to repay creditors.

In a Dec. 29 filing at the federal court in Alexandria, Va., officials said the company has been focused on closings of its Storehouse retail stores and other matters, according to an Associated Press report released Wednesday. The company requested a four-month extension that would give it until May 13 to file its Chapter 11 plan.

“In the few months since these cases were filed, the debtors have not had an opportunity to formulate a Chapter 11 plan,” company officials wrote in the Dec. 29 filing, according to the report.

In the meantime, a division of Sun Capital Partners is the lead bidder for Rowe and will open a Jan. 18 auction with a $30 million bid for Rowe’s remaining assets.

Rowe filed for bankrutpcy on September 18 in a move the company said was prompted by declining sales and rising interest payments on its debt. In its most recent court filing, the company said it is still tallying its total debt and working to determine the legitimacy of some outstanding claims.