Jennifer Convertibles Exits Bankruptcy
Sofabed retailer Jennifer Convertibles Inc. is out of bankruptcy protection, the company announced Friday.
Judge Allan Gropper of the U.S. Bankruptcy Court for the Southern District of New York in Manhattan signed off on the exit from Chapter 11 on Friday.
Its largest creditor and key foreign supplier, Haining Mengnu Group Co. Ltd. of Haining, China, owns roughly 90% of the new Jennifer Convertibles. Some of the Woodbury, N.Y., company’s other creditors own the remainder.
Chief executive Gebing Zou and president Rami Abada lead the new management team. “This is an important day for Jennifer Convertibles,” Abada said in a statement.
In court papers listed with Jennifer Convertibles’ filing last July 18, Haining Mengnu had a $16.7 million claim. In its filing, the company cited mounting losses and the inability to find alternative financing.
When it filed, Jennifer Convertibles had 142 Jennifer Convertibles stores, 154 Ashley Furniture HomeStores and 12 Jennifer Leather stores; in addition, it licensed five other Ashley locations. Upon exiting, it has 64 Jennifer Convertibles stores, eight Jennifer Leather stores and six licensed Ashley Furniture HomeStores.
The company’s general bankruptcy counsel was Olshan Grundman Frome Rosenzweig & Wolosky LLP and its financial adviser was TM Capital Corp.