Jennifer Convertibles seeks bankruptcy protection
Jennifer Convertibles store in Farmingdale. Jennifer and its affiliates had to show that reorganization could repay creditors at least as much as liquidation. Credit: Karen Wiles Stabile
Jennifer Convertibles, a Woodbury-based home furnishing company, announced today that the company and its subsidiaries have filed for bankruptcy protection.
The sofabed retailer, which said it could not find alternate financing, plans to keep operating and says it does not expect the move to stop it from fulfilling any orders with customers. The petition was filed in the United States Bankruptcy Court for the Southern District of New York.
Substantial losses over a period of time resulted in lack of liquidity, according to the company. Chapter 11 protection was requested because they were unsuccessful in obtaining financing to operate otherwise.
The company's board of directors deemed it was in the best interests of all parties including employees, creditors and customers, to file for bankruptcy protection.
The company signed an agreement with its largest creditor, Haining Mengnu Co. Ltd. Group, under which the foreign supplier will continue to supply goods to Jennifer Convertibles and will convert a large portion of the company’s debt into common equity.
Above is the company's store in Farmingdale
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