Wickes Furniture Goes Bankrupt

Wickes Furniture, a furniture retailer acquired by Sun Capital Partners in 2004, has filed for Chapter 11 bankruptcy protection. It lists $190 million in assets and $208 million in liabilities, and has reached a $30 million DIP financing arrangement with Wells Fargo Retail Finance. Get more info.



Wickes Furniture announced that it has filed petitions in the U.S. Bankruptcy Court for the District of Delaware for relief under Chapter 11 of the U.S. Bankruptcy Code on February 3, 2008. The Company will continue to operate its stores while under Chapter 11 protection.

The Company has filed various first-day motions with the Bankruptcy Court intended to allow the continued operation of its business. In addition, the Company has arranged and sought Bankruptcy Court approval for a $30 million debtor-in-possession credit facility to be provided by Wells Fargo Retail Finance. With this facility, the Company will have sufficient liquidity to operate its business through the bankruptcy proceedings.

“The company is currently pursuing several alternatives. We are hopeful we will be successful,” said Wickes chief restructuring officer Michael Buenzow of FTI Consulting.

The case number for Wickes' filing with the U.S. Bankruptcy Court for the District of Delaware is #08-10212, and further information will be available online at http://chapter11.epiqsystems.com/wickes.

About Wickes: Wickes Furniture is one of the leading furniture retailers in the United States with 43 retail stores serving greater Chicago, Los Angeles, Las Vegas, and Portland. Founded in 1971, Wickes offers attractive room packages featuring complete living rooms, dining rooms, bedrooms as well as bedding, home entertainment, accessories and accent furniture. Wickes employs over 1,700 employees and offers products from leading furniture and bedding manufacturers. Additional information about Wickes is available at http://www.wickesfurniture.com.