27 Store Domain Home Furnishings Announces Chapter 11 Filing

Furniture World News

Domain, Inc., d/b/a Domain Home Furnishings announced that the Company has filed a voluntary petition to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court, District of Delaware. Under Chapter 11, Domain will continue to operate its businesses under Court protection from creditors, while seeking to develop and implement a reorganization plan. With the financial pressures associated with operating the 27-store chain, particularly in today’s depressed economic and real estate environment, Domain has experienced reduced sales and loss of working capital. After careful consideration and a thorough review of its options, the Company concluded that the best way for Domain to address these challenges, while continuing to serve its customers and operate the business, is to seek the protection of the Bankruptcy Court via a Chapter 11 filing. Domain’s 27 stores in Massachusetts, Connecticut, New Jersey, New York, Pennsylvania, Maryland and Virginia, as well as its Distribution Centers, will remain open during the Chapter 11 proceedings. The Company is also actively seeking ways to fulfill outstanding customer orders during this process. Domain’s board also voted to refocus its management team during this reorganization phase to enable its leadership to focus on the current tasks on hand. Judy George, founder and Chief Executive Officer of Domain, will drive an aggressive fundraising campaign to seek investors for the Company. Tony Castelli, Domain’s VP--Stores & Operations, will assume day-to-day operations responsibilities during the reorganization process. According to Judy George, a 30-year home furnishings innovator, “Domain has been my lifelong passion and I will fight for our future. I’m taking every possible measure to protect my customers and employees, who are like family to me. My main role throughout our reorganization will be to raise the funds needed to allow Domain to thrive.” Ms. George added, “Our team of great Associates is deeply committed to serving our customers and working constructively with our vendors to get our operations back on track. We hope our Company will be here for many years to come, providing the high style, quality home furnishings our customers have come to expect from Domain.” Chapter 11 filings allow companies to reorganize in response to situations such as the current economic pressures and are a proven process that many ‘brand name’ companies have used to gain breathing room from some financial pressures while working to strengthen and revitalize their businesses.