Rhodes to Recovery

Rhodes Inc. (Atlanta) has retained an asset management firm to dispose of 21 Rhodes Furniture stores and warehouses and three John M. Smyth’s Homemakers Furniture stores located throughout Georgia, Illinois, Kansas, Kentucky, Missouri, North Carolina, Ohio, South Carolina and Tennessee. The disposition of these locations is part of Rhodes’ Chapter 11 bankruptcy restructuring, which the furniture retailer filed for in November.

“The stores and warehouses are located in both strip centers and freestanding buildings and they range in size from 27,809 to 113,250 square feet,” said Andy Graiser, co-ceo of DJM Asset Management (Melville, N.Y.). “Since many of the stores are in well-established locations, have long lease terms and contain below market rental rates, we expect quite a number of interested parties to submit offers to purchase leases.

“The locations can be acquired individually or in packages of two or more,” Graiser added, “with all bids subject to bankruptcy court approval.”

“We expect most of the locations to operate through the end of March 2005 with the exception of six stores which are expected to close at the end of January 2005”, said Vicki Johnson, Rhodes corporate counsel and director of real estate.