22 of Furnishing 2000 Stores Will Open for 3-Month Liquidation Sale
Furnishings 2000, which entered bankruptcy proceedings in September, will reopen 22 of its 31 stores in California on Saturday for a three-month liquidation sale. When the sale is completed in February, the troubled furniture retailer will close all its stores in Southern California.
The Mira Loma-based furniture store chain owes an estimated $20 million to $30 million to creditors, including about $1.2 million to customers who made down payments on furniture never delivered, said Don Vesey, a Northern California mattress manufacturer who serves as chairman of Furnishings 2000’s creditors’ committee.
Initial proceeds of the liquidation sale, expected to gross about $40 million, will be used to “take care of consumers” who made those down payments, Vesey said.
General Electric Credit Corp. is Furnishing 2000’s only secured creditor, with a $6.5-million claim, Vesey said. Its other creditors are mainly wholesalers and manufacturers.
Because of inventory constraints, Furnishings 2000 won’t be able to supply every customer with specific merchandise ordered before the stores entered Chapter 11 bankruptcy proceedings.
Furnishings 2000 on Tuesday began sending letters to customers with down payments on undelivered furniture. Customers who don’t receive letters should seek assistance at a nearby store, a spokeswoman said.
Furnishings 2000 stores in Puente Hills, San Bernardino, Lancaster, Corona, Artesia, Anaheim, Redondo Beach, West Los Angeles and Van Nuys will reopen Saturday for the sale.
In San Diego County, Furnishings 2000 will reopen stores in El Cajon and the Clairemont area of San Diego. Stores in Bakersfield, Chula Vista, Downey, Glendale, Orange, San Marcos, Santa Ana, Upland, Venture and West Covina will not reopen for the sale.
In Northern California, 11 stores will reopen Saturday.
Although Furnishings 2000 will close all its remaining Southern California stores when the sale ends in February, its 11 Northern California stores will remain open indefinitely, with profits earmarked for unsecured creditors whose debts are not covered by profits from the liquidation sale, Vesey said.
