California Retailer Files Chapter 11 Bankruptcy

Fresno, CA, Oct. 2, 2009--One of the oldest and best-known floor-covering retailers in the central San Joaquin Valley has filed for bankruptcy.

A&M Carpet Inc., which operates as A&M Flooring America and Big Bob's New and Used Carpet, filed Thursday for voluntary Chapter 11 bankruptcy protection in federal court. The move enables the company to continue operating while reorganizing its finances.

A 45% drop in revenue over the past 18 months prompted the move, said president Lee Horwitz. The second-generation family-owned business has been around since 1940, and Horwitz said he has no plans to close, although two of its four stores were shuttered.

The company's flagship store and its Big Bob's New and Used Carpet showroom  will remain open. Two stores on West Shaw Avenue in Fresno and on Clovis Avenue in Clovis will close.

Horwitz, unsure of where the economy is headed, said he is preparing the business for even more deterioration. "I don't think [the economy] has bottomed out," he said. "We won't bottom until the early part of next year."

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