Patio Furniture Chain Files for Chapter 11 Bankruptcy

by San Antonio Attorney

Offenbachers, a patio furniture chain based in Lanham, filed for Chapter 11 bankruptcy on Oct.  24.  The business will close after 44 years of operation.

Eight stores will be closed after the bankruptcy filing is finalized.  The store’s complete shutdown comes after Offenbacher’s acquisition by Antson Capital Partners, a private equity firm from Baltimore.

The closing sales of the store will go directly to the creditors, according to the bankruptcy filing.  SB Capital Group, a firm who specializes in going out-of-business sales will serve as an exclusive agent for the liquidation of inventory, fixtures and store equipment.

All fixtures and equipment in eight Offenbachers stores will be sold.  In addition, all acquired assets from Offenbacher’s headquarters and distribution center will be sold as well.

In 2015, the furniture chain only made $13.8 million in total retail sales.  This amount is not enough to fulfill pending debts and wages to 65 employees.

Attorney Joel Sher, a lawyer from Balitmore who represents the furniture chain, said that the company opted to file for Chapter 11 bankruptcy so the employees can be be oriented to a more peaceful transition period.  Chapter 11 bankruptcy also provides the benefit of reorganizing the company.

Offenbachers tried all means to improve profit but sales plummeted beyond their targeted goal.  The company resorted to other alternatives such as additional funds and finding an investor.  Unfortunately, these measures were not successful.

Offenbacher’s financial crisis of debt and liquidity issues led its management to decide that the only solution to pay off creditors was to file for bankruptcy and liquidate its assets.

Offenbacher’s branches are located in Maryland and Virginia.  Founded by Karl Offenbacher,the first store opened in 1972 in Rockville, Maryland.  The store sold pool supplies and small patio furnitures.

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