Oskar Huber Parent Declares Bankruptcy, Plans GOB Sales

September 23, 2008  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on September 2008 A company created through the merger of two Philadelphia-area retailers, Oskar Huber and D&D Home Furnishings, is seeking permission to hold going-out-of-business sales at its nine stores after filing for Chapter 11 in a U.S. Bankruptcy Court in Camden, N.J., Monday.

According to court filings, the two companies based in Southampton, Pa., merged operations six months ago in order to cut advertising and purchasing expenses, but almost immediately soft market conditions created difficulties for the new company, DD-OH Family Partners. “Within a few months of the merger, sales had declined 40 percent to 50 percent from pre-merger levels. At the same time, the costs of inventory skyrocketed, affected by sharp increase in the cost of manufacturing and shipping finished goods,” according to the filing, which also said the company had difficulty getting additional financing.

The filing said the merger was successful in cutting expenses like advertising and warehousing, but added, “the reductions were more than offset by declining sales, tighter credit options, increased fuel costs and the sagging economy.”

Hal Baume, the attorney who filed DD-OH’s Chapter 11 petition, told the Bucks County Courier Times that a hearing on a going-out-of-business sale is set for Oct. 6. Once the sale is underway, he said the company will determine whether it will be possible to re-open with a smaller number of stores.