American Home Shutting Stores

November 4, 2008  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on November 2008 Disputing initial newspaper reports, Albuquerque, N.M.-based American Home Furnishings officials said Tuesday that the 11-store retailer will shut down its operations in Arizona, which has been hit hard by foreclosures, and will consolidate some operations in its home state, according to records in the U.S. Bankruptcy Court in Los Angeles.

Inside Tucson Business and the Associated Press reported Tuesday that the company’s initial statement said there would be no closings, but COO Ted Leveque told the business publication Tuesday that “we are going to close down our Arizona operations and liquidate the stores,” and added that the housing crisis has had a particularly harsh impact in Arizona.

In court records, the company said it plans to rebuild its business around three stores.

“Under this newly proposed structure, we would be able to preserve our 70-plus-year heritage and continue to serve customers in the New Mexico market,” company officials said, according to a company statement that was issued Tuesday.

The plan calls for three stores in Albuquerque to be consolidated and operate together with locations in Santa Fe and Farmington. The court papers indicated that the bankruptcy filing was prompted by Wells Fargo Retail Financing cutting off a revolving credit facility. The bank is owed $4.9 million.