iFloor Locks Its Doors, Files Chapter 11

Tukwila, WA, Dec. 4, 2008--Flooring retailer iFloor filed Chapter 11 papers in a Seattle bankrupcy court.The company, well known for its unusual marketing practices, had locked its doors at its Tukwila headquarters, as well as at its Dalton, Ga. store. It also filed bankruptcy protection in court in Seattle and eliminated approximately 90 of 150 employees.

The company said it could not overcome the current economic environment and was unable to secure adequate funding to stay in operation.

At social networking site Twitter.com, CEO Steve Simonson on Monday wrote,"Bad Day, turning into bad week. Wishing all of you the very best! "

A supplier told Floordaily that his company's distributor was approached to purchase multiple containers of laminate flooring that would not be shipped because of a bankruptcy. The iFloor website was not listing any brand name flooring. No one was answering iFloor phones.

IFloor began as an Internet retailer in 1999 and later opened traditional stores, now with 38 stores in 19 states. It also offered installation online and a year ago offered online shoppers a $1 million limited warrant for web purchases, because not all manufacturers would cover Internet purchases.

IFloor was number 169 in the Internet Retailer Top 500 Guide. It was also number 26 on the Floor Focus Top 100 Retailers with $85 million in sales.

In court documents, the company said it had assets of $1 million to $10 million, and liabilities between $10 million and $50 million.

A company spokesman told the Seattle Times that it will concentrate on selling remaining inventory and see if there is any way to keep the company going.

Securities filings show iFloor last month tried to raise $6 million in equity capital.