Retailer to close 8 stores in outlying markets and keep its remaining 18 Chicago-area stores open
CHICAGO — Home News Now 125 Retailer The RoomPlace has filed for Chapter 11 bankruptcy protection as part of restructuring that aims to align its costs with its projected sales in the current business environment.
As part of the plan, the company plans to close eight stores in its outlying markets. This includes six locations in and around Indianapolis, one store in Kenosha, Wisconsin, and one store in Peoria, Illinois. It will keep its other 18 Chicago stores open, focused on strengthening operations at those remaining locations.
“As a family-run business with strong community ties, it’s not an easy decision to close stores and impact the people who work, shop and live in the affected communities,” said Bruce Berman, CEO of The RoomPlace. “Retail sales throughout the country continue to be down, and our industry has been hit hard. We’re making the tough decisions now to ensure we’re around for another 100 years.”
Its filing in U.S. Bankruptcy Court for the Northern District of Illinois on Friday said the company has liabilities between $1 million and $10 million and more than 200 individual creditors.
As part of the wind-down in Indianapolis, Kenosha and Peoria, The RoomPlace is working with Planned Furniture Promotions to conduct those store closing sales.
The retailer said that its stores in Indianapolis, Kenosha and Peoria are currently open and are still taking orders at this time. It also noted that customers who make a purchase between now and when PFP begins the closing sales will be guaranteed to receive their order. No date has been set on when the closing sales will begin.
For the 18 remaining Chicagoland locations, the retailer said it will conduct “business as usual with stores remaining open with normal hours and a renewed commitment to the Chicago market.”
“We are determined to become better and stronger in Chicagoland by continuing to offer consumers the largest selection of stylish brands at the market’s best prices.” Berman said.