Stylus Furniture Seeks Protection Under Chap. 11 : Retail: Stores that sell big-ticket items are finding it difficult because of the Gulf War and the recession, analysts say.

Stylus Furniture Inc., a Corona-based chain of 19 stores including three in Orange County, has sought protection from its creditors in U.S. Bankruptcy Court here, the company said Tuesday.

The company, which specializes in sales of custom-made modern furniture, filed a Chapter 11 bankruptcy petition on Monday. Chapter 11 allows a company to continue to operate while coming up with a plan to repay its debts.

“We intend to reorganize the company,” said Stylus President Michael Solomon in a brief telephone interview Tuesday. “We believe it (the filing) is a very positive step that is going to allow us to emerge a stronger company.”

Solomon would not discuss the company’s assets or liabilities, or elaborate on the problems that led to the filing.

The company, founded in 1985, grew quickly and specializes in contemporary furniture that appeals to younger buyers. The company’s Orange County stores are in Costa Mesa, Fountain Valley and Santa Ana. The other stores are in surrounding counties.

Analysts said the filing points up the difficulty that furniture retailers are having amid recession and war. The local economy is in recession and consumer confidence is low, which translates into many people putting off the purchases of furniture and other big-ticket items.

“Since the outbreak of the war, their business has fallen off tremendously,” said Tony Cherbak, a retail consultant for the accounting firm of Deloitte & Touche in Irvine. Consumers, he said, “are waiting to see what happens in the Gulf. Some furniture executives I’ve talked to (say) that it has just thrown their business off.”

Patricia Murphy, a retail analyst for the accounting firm of Ernst & Young in Irvine, said that Stylus, known for a wide selection and discount prices, could have gotten into trouble because it expanded too quickly.

But, she noted, consumers are shunning more expensive items until the war ends. “If a purchase can be delayed, it will be delayed on big-ticket items,” she said.