Rug Retailer Moomjy Files for Bankruptcy

Paramus, NJ, Aug. 25, 2011 -- Rug and carpet retailer Einstein Moomjy has filed for bankruptcy re-organization and cut its operations as sales have plummeted, according to NorthJersey.com.

The company, started in 1948, has cut its workforce from more than three dozen to just a pair of unpaid employees and members of the Moomjy family who run the company's three stores, NorthJersey reported.

The company hopes that a bankruptcy sale, likely in late September or early October, will enable the company to continue to operate North Plainfield and Whippany stores.

In Chapter 11 bankruptcy papers filed Aug. 19, Einstein Moomjy reported assets of $2.5 million and liabilities of $4.47 million. It said revenue this year is about $921,000, compared to $6.65 million in 2010 and $13.35 million in 2009.