Home chain with 4 O.C. stores files for bankruptcy – Orange County Retail – The Orange County Register
Updated March 4 at 7:18 p.m. according to an e-mailed statement from Jennifer Convertibles: “In general, the company is looking to keep as many stores open as possible and under the right terms and conditions open some more locations. of course it is all governed by terms and conditions to be worked out on a per location basis with landlords. as such, we cannot comment on any specific location.”
Updated March 2, 2011 at 10:18 a.m. Jennifer Convertibles announced Feb. 23 that it emerged from Ch. 11 bankruptcy.
Sofabed retailer Jennifer Convertibles, which has four O.C. stores, filed this week for Chapter 11 bankruptcy protection.
Jennifer has stores in Tustin at The Market Place, Laguna Hills, Huntington Beach and Brea, according to its website. The company operates 130 Jennifer stores.
“Net sales from continuing operations were $88,845,000 and $113,073,000 for fiscal years ended August 29, 2009 and August 30, 2008, respectively,” according to bankruptcy court documents. ”The decrease in net sales is attributable to a decline in overall demand within the furniture industry sector due to a poor housing market and an overall weak U.S. economy. Consolidated same-store sales from continuing operations … decreased 19.6% for the thirteen weeks ended May 29, 2010 compared to the same period ended May 30, 2009.”
The company’s largest creditor and key foreign supplier Haining Mengnu Co. ltd Group will continue to supply goods to the company and will convert a large portion of debt into common equity. The Chapter 11 filing is not expected to negatively impact existing or future customer orders, Jennifer said.
Jennifer stores range from about 2,000 to 13,000 square feet. The company anticipated that future Jennifer stores will range from about 2,000 to 4,000 square feet, according to court documents.
CEO Harley Greenfield said, “due to the quality of our products and our people, I am confident that we will emerge as a stronger organization that will bettery satisfy our customers, suppliers and employees.
(Image courtesy of iStockphoto.)
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