Hoboken Files Chapter 7, Plans to Liquidate
Washington, DC, November 8, 2007--Hoboken Wood Flooring LLC has filed for Chapter 7 bankruptcy and will liquidate its assets. The company, which shut its doors on Monday, listed assets and debts of more than $100 million each, according to documents filed Wednesday in U.S. Bankruptcy Court in Wilmington, Del.
Hoboken Wood Flooring decided to liquidate its assets after the company's board determined the company would be unable to obtain financing or to generate enough cash to fund an expensive Chapter 11 case, according to Chief Restructuring Officer Craig S. Dean, a partner at Chicago-based turnaround firm AEG Partners.
Instead, Dean said, the company's board decided that an immediate liquidation was in the best interest of creditors.
Hoboken Wood Flooring and Dean weren't immediately available for comment.
Jeoffrey L. Burtch has been named the Chapter 7 trustee in the case. Under Chapter 7, Burtch will take control of the company and will begin the process of liquidating Hoboken Wood Flooring's assets for the benefit of creditors. The company said it had between 1,000 to 5,000 creditors.
Founded in 1930, Hoboken Floors at one time employed more then 600 people at some 20 locations. The privately owned company is controlled by
The buyout firm owns an 80 percent stake in the flooring company's parent, HWF Holdings LLC. An investment vehicle called Investment S Corp, based in Convent Station, N.J., has a 12 percent stake in the company. The holding company and three affiliates are also liquidating under Chapter 7.
Bankruptcy Judge Christopher S. Sontchi has scheduled an initial hearing for creditors on Dec. 11.