From Home Furnishing Business
Rockaway Proposes Liquidation Sales At Two-Thirds Of Its Stores
By Home Furnishings Business in Mattresses on May 2007
Rockaway Bedding, Randolph, N.J., a 180-store retailer that filed for bankruptcy protection in April, is seeking to liquidate $4.25 million in inventory at 121 money-losing locations, according to a filing Wednesday in the federal bankruptcy court in New Jersey.
According to the agreement, Rockaway has struck an agreement with Hilco Merchant Resources to borrow $600,000 from Hilco to pay expenses of the sale and repay it through the sale proceeds.
In the filing, lawyers for Rockaway said, Retailing Hilco to conduct the sale to dispose of the leases and (inventory) will maximize the value of those assets for the benefit of the (creditors). Designated stores from which the sale is to be run are not profitable and it is in the best interests of the (creditors) to eliminate as promptly as possible the cost of running those stores.
A list of 121 stores where Rockaway proposes to hold liquidation sales includes locations in New York, Pennsylvania, Connecticut, Maryland and Virginia. Stores in the companys home state of New Jersey do not appear on the list, which may indicate the company plans to consolidate its operations there. A separate filing indicates the chain has already reached an agreement to sell stores in the Washington, D.C., area to a competitor.