LA-based Hakakian Group has already reopened Krause's Brea factory and rehired workers are filling orders that had been taken before the company went belly up. The Hakakian Group has agreed to compensate all of the nearly 10,000 customers who had put deposits on Krause's furniture, either by filling the orders or offering discounts for other furniture purchases.
In addition to filling approximately $8 million worth of back orders, the Hakakian Group will have to pay $1.8 million in back rent to the landlords at the stores they plan to reopen. Hakakian is planning to reopen both Krause's Furniture and Castro Convertible stores at locations nationwide by the end of November.
Krause's Furniture Inc., which declared bankruptcy in July, was forced to cease operations in early October. The company previously employed about 800 people nationwide.
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