Peoploungers Files Chapter 11

May 15, 2007  by in UnCategorized   

By Home Furnishings Business in Motion Upholstery on May 2007 Peoploungers, Nettleton, Miss., filed for Chapter 11 bankruptcy in the United States Bankruptcy Court of Northern Mississippi Tuesday. The motion upholstery company’s filing indicates it owes its 20 largest unsecured creditors more than $6 million.

The filing indicates the company believes funds will be available to unsecured creditors.

Top creditors include: Hickory Springs Manufacturing ($1.96 million); Haining Mengnu Group of Haining, China ($1.09 million); Haining Jinzheng Furniture of Haining, China ($658,127); Omega Motion ($393, 209): Henson Distributors ($329,145); Foamex ($256,794); Ryder Transportation ($303,285); Smurfit-Stone Container ($224,618); Bentley Design International ($204,119) and Leggett & Platt ($122,888); and Culp ($86,583).

Founded in May 1979, Peoploungers claims on its Web site to have have been the first company to successfully sell motion upholstery as a primary product. A company history said fierce competition forced the company to reinvent itself, and it was sold in 1997 to James Green Jr., the company’s chairman and president, in what the Web site describes as a buyout reorganization. Under Green’s ownership, the company streamlined its product line and made a commitment to providing the best in value, quality, styling and service. The company history states it has more than 750 employees and operates a 500,000-square-foot factory.