Chandler’s Inventory to Be Liquidated at Sale

Chandler’s Furniture Co.’s largest creditor said Friday that it expects to hold an inventory liquidation sale at the firm’s two showrooms next weekend.

Chandler’s, which was founded in the 1870s, closed unexpectedly last month under pressure from creditors. Previously, the company had posted signs at its stores saying the sale of inventory would begin by April 1.

The public sale is now scheduled to begin during the weekend of April 7 at Chandler’s showrooms in Santa Ana and Laguna Hills, said Greg Wilson, a spokesman for Norwest Business Credit Co. of Minnesota. However, the date of the sale is subject to negotiations with an independent company to conduct the sale, Wilson said.

Norwest, which says it is owed $2.9 million from loans made to Chandler’s, filed a lawsuit Feb. 2 seeking to force the company into receivership. Because of its secured lien on the furniture store’s inventory, Norwest has the right to take possession and sell the inventory.

The two companies reached an agreement by which Norwest will receive the proceeds from the sale of existing inventory and give up its security interest in Chandler’s future receivables. The agreement should allow Chandler’s to find a lender to supply new financing and continue its operations.

On Friday, Wilson said the store informed Norwest that it was still seeking financing to fill back orders.

Chandler’s could not be reached for comment on the financing arrangements or to update its plans for reopening.