ABC Carpet Plans Asset Sale Following Chapter 11 Filing
Luxury furniture retailer ABC Carpet & Home on Friday secured court approval to tap part of a $5.7-million loan to fund operations while it is in bankruptcy, Reuters reported. The 125-year-old company, with stores in Manhattan and Brooklyn, filed for Chapter 11 protection last week, with plans to sell its assets by the end of October.
During a virtual hearing, U.S. Bankruptcy Judge David S. Jones in Manhattan approved access by the company, which is being represented by Greenberg Traurig, to $2.25 million of the loan on an interim basis and will consider the remainder later this month, according to Reuters.
In its bankruptcy filing, ABC blamed the effects of the COVID-19 pandemic for its troubles, including the flight of many prospective customers who left New York. 2021 has seen few retail Chapter 11s compared with 2020, when both J.C. Penney and Neiman Marcus sought bankruptcy protection.
The company lined up a $15.3-million lead bid from 888 Capital, an entity controlled by Regal Investments. ABC owner Paulette Cole, the great-granddaughter of the company’s founder, holds a minority interest in 888 Capital.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).