Jennifer Convertibles, the Woodbury sofabed company, announced Monday that it and its subsidiaries have filed for bankruptcy protection.
The home furnishings company said that it intends to continue doing business during the bankruptcy proceedings, and that the case was not expected to stop it from filling customer orders.
Jennifer Convertibles listed assets of $30 million and liabilities of $46.3 million in court papers filed late Sunday in the United States Bankruptcy Court for the Southern District of New York. The company said it sought Chapter 11 protection because it had failed to muster financing to operate otherwise.
The company reached an agreement with its largest creditor, Haining Mengnu Group Co. Ltd., under which the Chinese manufacturer will continue to supply goods. Mengnu also will convert a large part of the company's debt into common equity, but Jennifer shareholders would be wiped out under the proposed plan.
"By agreeing with Mengnu in advance of the filing, we will be in great position to proceed with an expeditious restructuring through bankruptcy," chairman and chief executive Harley Greenfield said in a statement.
Jennifer Convertibles operates 142 namesake stores and 12 Jennifer Leather stores across the United States. There are nine Jennifer Convertibles and Jennifer Leather stores on Long Island. The company also owns 154 Ashley Furniture HomeStore - which has four Long Island locations - and licenses five others.