Richmond, VA, July 21--RoomStore, which emerged from bankruptcy court protection last month, bid this week to buy 50 of the 65 stores operated by Atlanta-based Rhodes for $38.8 million. The 50 stores are in Florida, Alabama, Georgia, Tennessee, North Carolina and South Carolina.
Rhodes, a unit of Heilig-Meyers, filed for Chapter 11 bankruptcy protection in November.
The RoomStore also had been a division of Heilig-Meyers, once the nation's largest furniture chains, which filed for bankruptcy protection in 2000. Heilig-Meyers shut down all of its operations except for The RoomStore, which became an independent company. It operates 65 stores in Virginia, Pennsylvania, Maryland, North Carolina, South Carolina and Texas.
RoomStore signed a letter of intent to buy Rhodes. Joining in its bid is Hilco Merchant Resources and Hilco Real Estate, companies specializing in liquidating stores and retail locations.
