Levitz Furniture Files Chapter 11 Again

November 8, 2007  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on November 2007 Levitz Furniture has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the Southern District of New York.

The retailer has 76 stores in the Northeast and West.

In a release, the company said the filing was necessary because of “insufficient liquidity to support the company’s current operations.” The company also said the filing is part of its strategy to evaluate its options, including a sale or finding a new financial investor.

The release said Levitz has received its lenders’ consent to use funds to continue operating. In addition, the retailer is seeking court approval to “support” employees, vendors, customers and other stakeholders by fulfilling existing orders, honoring customer deposits and maintaining payroll and employee benefits.

“We are hopeful this filing will enable the business to emerge stronger and better positioned for long-term success,” said Larry Zigerelli, chairman and CEO of Levitz Furniture. “We have an exceptional group of people at Levitz who have made great strides to improve our business during a challenging period for our entire industry.”

According to court documents, the company lists assets of more than $100 million and liabilities of more than $100 million. Its estimated number of creditors is listed as being between 1,000 and 5,000.

The top 20 unsecured creditors are listed as: Legacy Classic Furniture, $3,374,850.03; Collezione Europa, $2,947,725.82; Klaussner Furniture, $2,724,516.70; Prime Resources/Harbor Homes, $2,487,000.86; Haining Mengnu Group, $2,311,666.48; Tongxiang Shouwang Leather, $2,300,164.79; Samuel Lawrence Furniture, $1,860,653.81; Sealy Mattress, $1,457,240.74; Pro Line Printing, $1,050,678.29; DeCoro, $970,000; Riversedge Furniture, $882,752.22; Magnussen Home Furnishings, $776,516.01; Home Delivery Link, $763,013.66; Yue Sen, $731,157.64; Haining Nice Harvest Furniture, $719,082.40; Serta Mattress, $717,270.27; Steve Silver, $669,206.74; and Chaki Co. Ltd., $456,854.14.

This is the third time Levitz has filed bankruptcy in 10 years. The retailer filed in September 1997 and then again in October 2005.