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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.