It is hard not to see the perverse humor in a doomed retail chain trying to stave off the inevitable by chopping off an arm and a leg as it goes through bankruptcy proceedings:
The RoomStore is seeking U.S. Bankruptcy Court approval to close 25 stores and sell their inventory and other assets at an auction next month.Sales which, due to the continued cratering of the housing market, are never going to recover. But just like Borders books, RoomStore is apparently determined to thrash about in its death throes for as long as it possibly can even though it should be perfectly obvious that if few people are buying houses, they also aren't going to be buying a whole lot of furniture.
The company, which filed documents seeking to close the stores last week, asked to have bids submitted at auction on Jan. 4.
No stalking horse bidder was named, but the company said it reserved the right to name one before the auction date.
The RoomStore said the underperforming locations were chosen prior to its bankruptcy filing during a review of operations.
The majority of the closings affect stores in Texas, with 16 occurring in the state, including five locations in San Antonio. One location is described as the El Paso Distribution Center in court documents.
Three locations in Virginia and Maryland, and one each in Pennsylvania, Florida and Alabama, also will close.
In addition, the retailer is seeking authority to designate up to 15 additional stores for closure by Jan. 31, 2012.
The RoomStore operates 64 stores in eight states and has five warehouses, bankruptcy court documents said.
The company filed for bankruptcy protection on Dec. 12 with assets of $56 million and debts of about $52.5 million, including 13 unsecured furniture industry creditors owed $3.8 million.
The retailer said declining sales and depleted cash due to repaying much of a revolving loan this summer, led to the filing.
I live less than a mile from Roomstore at corner of Brittmoore & I10 in Houston, TX. 3 years ago I had $1500 cash in pocket to buy new bedroom suite and went there since had bought nice things before at that location and it is easy to get them to my house. While they did have nice array of furniture, I focused on nice complete bedroom suite for $975, only to be told it was not in stock. Whay have it on showroom if not in stock, there or at warehouse? They had HUGE array of scratch & dent items in back, this took up almost 1/2 store. Not good. Then they hired skank red haired lady as spokesman she is just downright creepy. And this particular location was gutted and started selling trinkets from around world. Called 'Roomstore World' it was huge wasted space with large (30 foot!) ceilings on things one could buy at swap meet or flea market. Yes, some nice things mixed in, but as I drove past this place 2-4 times DAILY my wife and I wonder how this place stayed open, parking lot usually empty while 1 mile down BEL furniture busy and 2 miles down Rooms To Go always seemed busy. I hate to see any business fail, this one included as it used to be a nice store, and some of the furniture we bought there when we bought our house still looks great! But they lost their way and this 'world' concept was a disaster, that and creepy red head skank lady in commercials I had to change channel when see her come on or hurl my tacos. I hope Roomstore stays in Houston, and get back to basics of selling good furniture at good prices, not Chinese & Kim Song Il North Korean trinkets like this location near me morphed to. The reson I am writing? One of my sons & me walked over there tonight seeing big banners on store for 'closed for biggest & final sale' and I searched only to find out this bankruptcy. Too bad.
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