Furniture Retailer Files for Bankruptcy Protection

Wheeling, IL, February 5, 2008--Wickes Furniture Co. has filed for bankruptcy protection.

The retailer's filing in federal bankruptcy court in Wilmington, Del., didn't say whether Wickes intends to close any of its 37 stores or lay off workers.

In its filing Wickes listed assets of between $10 million and $50 million, and estimated liabilities of $50 million to $100 million.

Wickes Furniture has changed ownership in recent years. It was a subsidiary of Taiwan-based Master Home Furniture until 2000, when Master Home defaulted on certain debt and Wickes went into receivership.

Private equity firm Sun Capital Partners Inc. acquired the company in 2002 on terms that were not disclosed.

Monday's disclosure comes less than a month after the trade journal Furniture Today reported that Wickes was asking suppliers to sign off on a plan that would let the company postpone repayment of its overdue debt until mid-2009.

Profit margins in the furniture business have been hurt partly because discount chains such as Target and Wal-Mart have carved out a portion of the low-end business.