Krause's has retained Encino, CA-based Buxbaum Group to manage the liquidation process. Going-out-of-business sales already are under way at a remaining 43 locations in California, Washington, Arizona, Colorado, New York and New Jersey. The sales include inventories from 14 shuttered stores. The merchandise, which is worth $22.5 million at retail cost, will be sold at a minimum discount of 40%.
These liquidations mark the final stage of store closings for Krause's. The company, which manufactures and retails made-to-order furniture and accessories, already has conducted sales at 22 Krause's Custom Crafted Furniture sites and three Castro Convertibles locations.
When Krause's filed bankruptcy in July, it received debtor-in-possession financing designed to support operations through Sept. 30. The court stipulated that if a sale of Krause's assets was not completed by that date, the company would have to liquidate inventories and cease operations.
"The estate, secured lenders and creditors committee were unable to come to terms with buyout groups that had put forward proposals for the acquisition of the assets by the Sept. 30th deadline," says David Ellis, COO of Buxbaum Group. "Accordingly, the company had no choice but to liquidate."
Prior to the liquidation, Krause's employed about 800 people nationwide. Aside from its manufacturing plant and retail stores, there were distribution centers in California, Washington, Colorado, Texas and New York.
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