Home Décor Products filed for Chapter 7 today in the U.S Bankruptcy Court of New Jersey and asked a judge for permission to liquidate. The e-retailer of home furnishings owes its 20 largest creditors $2.84 million, the Chapter 7 filing says.
After ceasing all operations on Friday, Home Décor Products Inc. has filed for bankruptcy.
The online retailer filed for Chapter 7 today in the U.S Bankruptcy Court of New Jersey and asked a judge for permission to liquidate. Home Décor, No. 143 in the Internet Retailer Top 500 Guide, didn’t list the value of assets in its bankruptcy filing, but it owes its 20 largest creditors $2.84 million dollars. American Express Tax & Business Services is listed as the biggest creditor and is owed $383,470. Home Décor also owes Google $177,929, UPS Supply Chain Solutions $152,771, search engine optimization company YourAmigo $127,191 and web analytics developer Omniture $60,062, according to the filing.
Home Décor, which began closing down its headquarters and nine e-commerce sites on Thursday, also owes $331,250 in severance pay to CEO Jon Bernstein, according to the filing.
During its final week of operation, some Home Décor executives tried to persuade the board of directors to file for Chapter 11, a form of bankruptcy that would have given the company time to reorganize, secure new working capital or find a buyer. But the Home Décor board voted to liquidate, a source who asked not to be identified tells Internet Retailer. “It looks like they wanted to switch back to their roots of drop-shipping but it was far too late,” the source says.
Home Décor, which posted web sales of $83.8 million in 2007, joins a growing list of merchants filing for bankruptcy. Other retailers filing so far this year or in late 2008 include 1800Mattress.com (No. 266), The Parent Co. (No. 117), Fortunoff (No. 299), Ritz Camera Centers Inc., ArtSelect Inc. (No. 421), Circuit City Stores Inc. (No. 16), KB Toys Inc. and iFloor.com (No. 178). Online retailer Ritz Interactive Inc. (No. 114) is a separate and independent company from Ritz Camera Centers.