Rhodes Inc. (Atlanta) has announced the filing of a voluntary petition for Chapter 11 Bankruptcy Protection.
The furniture retailer said its normal operations and customer service will continue without disruption, including sales, order processing and delivery. It announced that it has secured an $88 million debtor-in-possession (DIP) financing facility from Wells Fargo Retail Finance. The Company anticipates that the DIP financing that, together with its ongoing revenue stream, will be sufficient to fund its operations during the reorganization process.
But the retailer also said it will be closing 26 stores and said it expects to reorganize its business around its remaining 63 stores.
“After careful consideration, we concluded that a Chapter 11 restructuring represents the best long-term solution for Rhodes Furniture,” said president and ceo Steven Fishman, now the chief restructuring officer. “It is our goal to reach an agreement with our creditors in a quick and efficient manner, allowing us to restructure our debt and close underperforming stores with minimal disruption to our operations.”
The company has not set a target date for emergence from Chapter 11, but Fishman stressed that the strategy is to move quickly.
The stores targeted for closing are: Atlanta (Doraville Outlet and Perimeter); Birmingham, Ala. (Brook Highland and Five Points West); Charlotte, N.C. (Matthews); Chicago (Orland Park, Schaumburg outlet store and Sleepy Hollow); Cincinnati (Eastgate Road and Princeton Pike); Columbus, Ohio (Hamilton outlet, Hamilton Road, Morse Road and Sawmill); Dayton, Ohio (Beaver Creek and Miamisburg); Florence, Ky.; Greensboro, N.C. (regular store and outlet); Greenville, S.C.; Jacksonville, Fla. (Northside outlet); Kansas City, Mo. (Independence and Olathe); Nashville, Tenn. (Cool Springs, Rivergate and White Bridge); Spartanburg, S.C.; and Winston-Salem, N.C.