Rose Furniture Announces Agreement With Creditors

February 5, 2007  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on February 2007 Rose Furniture, High Point, N.C., which said last year it would shut down its retail store, announced an agreement with key creditors Monday that the company said would avert a shutdown.

According to the company’s announcement, a creditors committee signed off on a plan that would result in higher payments to creditors than if the company went through a bankruptcy liquidation. The plan calls for eligible creditors to receive payments of 11.5 percent that would be followed by additional payments of up to 18.5 percent over two years. Customers with cash deposits would receive a 50 percent payment initially and an additional 50 percent payment within six months of the plan’s effective date. The company has indicated it hopes the effective date would be in April. For the plan to win approval, 90 percent of creditors must agree to it.