A nationally recognized furniture retailer has filed for Chapter 11 bankruptcy. The RoomStore operates many locations around the United States offering consumers the promise “We don’t cut corners. We cut prices.” Despite the company’s best efforts to carve out their share in a highly competitive market, the company faces tough debt reorganization efforts if it is to remain in business.
Originating in the Dallas-Fort Worth area in 1992, The RoomStore opened several locations before incorporating with another big furniture retailer in 1997. By the end of 2000, The RoomStore had over 50 locations around the nation. However, such quick expansion lead the company into Chapter 11 shortly after.
Having just filed for bankruptcy only 10 years ago, The RoomStore company now hopes for a repeat performance of that filing. Not only were they able to emerge from bankruptcy with resolved debt troubles, but they actually acquired a few new stores from competitors along the way. Although current plans include closing several stores around the country, eight in the Dallas-Fort Worth area alone, the company believes it has a strong plan for reorganization and redevelopment.