It's too early to tell whether the RoomStore showroom near Hagerstown will close in the wake of the discount furniture retailer filing for Chapter 11 bankruptcy protection this week in a U.S. court, a company spokeswoman said Wednesday.
"There are no decisions yet on store closings," RoomStore spokeswoman Lisa Brock said.
The company said it hopes the move will help it reorganize around a core base of stores, The Associated Press reported. It plans to close a significant number of stores and reduce its staff and expenses during the process, AP said.
Brock said the store at 17159 Cole Road, which opened in March 2009, employs 12 people.
RoomStore listed about $56 million in assets and more than $52 million in debts in its court filing, The AP said.
RoomStore claimed a net loss of $7.7 million for the first six months of the fiscal year compared with a loss of $2.4 million in the same period in 2010, according to The AP.
The company has secured a commitment from Wells Fargo Bank, its current lender, for a further $14 million line of credit called a "debtor-in-possession credit facility," according to a RoomStore news release.
"The restructuring process will facilitate RoomStore's financial and operational plans, which are designed to restore the company to long-term financial health," the release said.
RoomStore operates 63 stores in Maryland, Alabama, Florida, North Carolina, Pennsylvania, South Carolina, Texas and Virginia, the release said. It began operations in Dallas, Texas, in 1992.
RoomStore also is a 65-percent shareholder in Mattress Discounters Group, LLC, the release said.
"There are no decisions yet on store closings," RoomStore spokeswoman Lisa Brock said.
The company said it hopes the move will help it reorganize around a core base of stores, The Associated Press reported. It plans to close a significant number of stores and reduce its staff and expenses during the process, AP said.
Brock said the store at 17159 Cole Road, which opened in March 2009, employs 12 people.
RoomStore listed about $56 million in assets and more than $52 million in debts in its court filing, The AP said.
RoomStore claimed a net loss of $7.7 million for the first six months of the fiscal year compared with a loss of $2.4 million in the same period in 2010, according to The AP.
The company has secured a commitment from Wells Fargo Bank, its current lender, for a further $14 million line of credit called a "debtor-in-possession credit facility," according to a RoomStore news release.
"The restructuring process will facilitate RoomStore's financial and operational plans, which are designed to restore the company to long-term financial health," the release said.
RoomStore operates 63 stores in Maryland, Alabama, Florida, North Carolina, Pennsylvania, South Carolina, Texas and Virginia, the release said. It began operations in Dallas, Texas, in 1992.
RoomStore also is a 65-percent shareholder in Mattress Discounters Group, LLC, the release said.
