Woodbury-based sofabed maker Jennifer Convertibles Inc. has emerged from a Chapter 11 bankruptcy reorganization and will continue to operate the furniture chain, though on a smaller scale and with new leadership.
Ninety percent of the company’s stock is now owned by the Chinese upholstery maker that was its top creditor, Haining Mengnu Group Co. Ltd. The stock value of all pre-bankruptcy shareholders is wiped out.
The chain now consists of 64 Jennifer Convertibles and eight Jennifer Leather stores; and six Ashley Furniture Homestores, the company said this week in documents filed with the Securities and Exchange Commission.
That’s down from the chain’s nearly 200 stores before the U.S. economy — and the housing market — soured in recent years.
The company's new chief executive is Gebing Zou and its president is Rami Abada. Its directors are Herb Hester Jr., James Jiang and Yaoxiang Yue.
"This is an important day for Jennifer Convertibles," Abada said after the company filed its SEC documentation. "We are emerging as what we believe to be a stronger organization that will better satisfy its customers, suppliers and employees."
Abada said the company, during the bankruptcy process, has "worked diligently to maximize recovery for our creditors, while maintaining our focus on our core business of delivering quality home furnishings to our customers."
Under its previous management, headed by Harley J. Greenfield, Jennifer peaked at nearly 200 stores nationwide. It shut 69 stores in 2010.