ABC Carpet & Home, the NY-based home goods retailer, has filed for Chapter 11 bankruptcy.
The American retailer has, reportedly, expressed its intent to sell itself in a court-supervised process.
The retailer, in papers submitted to the court, has attributed the cause of its state to pandemic-induced issues like delays in supply chain as well as frequent store closures.
To make matters worse, the retailer has also been struggling to find an investor to help finance a turnaround. It’s been a tough one year for the retailer, as it has been for many other fashion retailers across the globe.
ABC Carpet & Home has a stalking horse bid and Chapter 11 financing deal from 888 Capital, which is controlled by Regal Investments.
Notably, a minority interest is held by a kin of the retailer’s founder.
Aaron Rose, CEO, ABC, said that the aim of Chapter 11 bankruptcy is to maintain ABC as ‘a viable business’. Reportedly, the sale of the firm is expected to conclude by the end of October this year.
ABC Carpet & Home was founded in 1897, and besides making world class carpets and rugs, it is known for textiles, fashion accessories as well as furniture.