RoomStore Conducts Liquidation Sale after Declaring Bankruptcy

by San Antonio Attorney

Roomstore’s fate is not as bright as the two-story furniture store located in the Prescott Gatewat Mall will host a liquidaton sale following a bankruptcy filing.

The other 12 branches of RoomStore, have yet to be determined if they will still resume operations and when will the official closures take place, according to Alan Levitz, RoomStores general manager in Phoenix.

When the company filed for bankruptcy last December 18, a lot of customer orders were frozen and there was increased concern if those orders will actually be fulfilled.  Levitz clarified that majority of these concerns have been addressed.

Product warranties are the court’s responsibility since the bankruptcy filing commenced.  Roomstore has announced via its official website that warranty claims are covered under a creditor claim and they are subjected to the Bankruptcy Code restrictions.  These claims will not be compensated through interim.

RoomStore also cannot honor any warranty claims until the proceedings of bankruptcy have concluded.  This will only finish in the final quarter of 2016.

Customers are highly advised to contact the main manufacturers of the items purchased and also consult the RoomStore website for any updates in the Bankruptcy filing.  There will be a list of manufacturers along with the list of numbers collated in a pdf file.  These will be titled ‘Discussion of Warranty Claims’.

Levitz denied the company speculation that the employees were to be terminated on the second week of February.  Only less than five percent of the employees were laid off last month as their tasks were no longer needed by the company.

The recovery of the company is still uncertain as they are faced with numerous problems at hand.  However, Levitz is still optimistic about RoomStore restoration to its former glory and they have tried all means necessary to ensure a good future for the company.

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