From Home Furnishing Business
Chromcraft Revington, Sport-Haley Holdings File Chapter 11
The parent company of Chromcraft Revington has filed for protection under Chapter 11 of the U.S. Bankruptcy Code under the agreement with a secured lender.
The filing will allow Sport-Haley Holdings to complete winddown of Chromcraft Revington and reduce outstanding debt.
Late last month, the company completed the sale of the intellectual property and brand names of Chromcraft to Arts & Crafts Inds.
"After extensive discussions with Chromcraft's primary lender, we have decided to take the necessary step to protect our ongoing operations, as we continue with the winddown of our Chromcraft Revington affiliate,” said Samuel Kidston, chairman and CEO of Sport-Haley Holdings. “The purpose of the filing is to gain bankruptcy court protection while we restructure our balance sheet. Throughout this process, we intend to continue business as usual.”
Sport-Haley acquired Chromcraft Remington in October 2013.
Merchant Factors will provide a debtor-in-possession financing facility to enable normal operation of the company's ongoing operations, including the normal course payments to employees.
According to bankruptcy court documents, creditors include the International Home Furnishings Center, which is owed nearly $727,000.