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WOODBURY, NY-The 121-store Levitz Home Furnishings has filed for Chapter 11 protection in the US Bankruptcy Court in the Southern District of New York. The retailer plans to keep stores operational under its plan, according to a statement issued by executives.
Levitz is asking the court for approval of a $90-million debtor-in-possession credit facility by GE Commercial Finance, which is to include an incremental credit facility of $25 million arranged by Prentice Capital Management. With the financing "we are able to implement a restructuring plan that will provide us a platform for future success," says C. Mark Scott, Levitz's president and CEO, in a statement.
Levitz has previously filed for bankruptcy, in 1997, from which it emerged in 2001. During that period the company closed about half of its stores, leaving it with about 60 units.
Also in 2001, Levitz merged with Seaman Furniture Co., creating a company with 116 stores, about half under the Levitz name and the remainder under Seaman's. In May Levitz changed the Seaman's stores into Levitz units, though the company still sells furniture under the Seaman name.
Also earlier this year GE Commercial Finance and Resurgence Asset Management provided Levitz with $40 million in financing to "accelerate its growth strategy," according to a company statement. "This program is the logical next step for the company and will provide us an excellent opportunity to grow," said Scott at the time.
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