Great American Plans To Liquidate Jennifer Stores

Posted by MCC on July 31st, 2010 at 07:00am

Great American Furniture Services made the only bid to conduct the liquidation sales for almost 40 stores that Jennifer Convertibles plans to close. On July 18, the Top 100 company filed Chapter 11 citing the company’s lack of liquidity. The company has indicated that it has plans to close the stores in an effort to return to a profitable state.

Jennifer Convertibles is also asking for court approval for a deal that they had reached prior to the filing. Under the deal, the company’s largest creditor Haining Mengnu, a Chinese upholstery producer, agreed that it would convert a big portion of the debt to 95 percent common equity stake in the company. Jennifer’s other creditors would hold the remaining 5 percent.

Jeff Yellen, Great American CEO, has confirmed that they will conduct sales at 32 of the 137 stores for a maximum of 60 days. The sales which were set to begin on July 26 have been delayed due to court procedures.

Under Furniture News