Bay Furniture Co. has started a process similar to bankruptcy, and the trustee is to sell the company's assets include the Homewood location and the remaining inventory from the six stores.
Process called "Assignments for the Benefits of Creditors," places where the company's assets in the hands of an Assignee / guardian.
"The difference is it's a nonjudicial process," said Howard Samuels, president of Rally Capital Services, which is appointed Assignee / guardian. "That's the general law of the drug out of court any overview .... This is the method that is faster and less expensive to get to the same end as the bankruptcy."
The company, based in Homewood - private BLR Corp., owned by Barry, Larry and Richard Slovy - reported assets of approximately $ 11.2 million and liabilities nearly $ 14.36 million on April 25 a letter to the creditor. Assets include Homewood store its values at $ 2 million and inventory was valued at nearly $ 6 million at the time of the assignment.
Since then, Bay stores have "sales campaign cash" and now "out of business sale." In addition to Homewood, other Bay stores are located in Hobart, Hoffman Estates, Aurora, Lake Zurich and Mokena.
Companies listed creditors are: secured debt of $ 6.67 million, $ 99,500 lease, warehouse and delivery charges of $ 8087 million, and general and unsecured debt of $ 6.78 million.
Together with suppliers and vendors, creditors are not safe now includes hundreds of customers with undelivered furniture on order from January, February and March.
The majority of customers with furniture in order to get their merchandise, Samuels said Thursday. Most of - 50-60 - from major furniture manufacturer with exceptional command works with Samuels, but some do not, he said. Customers who do not have furniture or choose to not "will get a refund in accordance with the process," said Samuels.
Customers will "receive a special administrative claims and priority among other general creditors and not safe," he said.
American Chartered Bank of Schaumburg, which has $ 6.67 million in loans for the Bay, is the company's secured creditors and, thus, will become the first creditor to receive payment from the sale of assets Bay.
The liquidation will conclude at the end of September. At that time the lender will be paid in order of priority, said Samuels.
"We made a big effort to close the gap (between the asserted and obligations,)" said Samuels. "My job is to get the best and most fair to return the assets. The market will determine how well we do."
One customer who had not received ordered goods said she was outraged by the situation. A woman in the northern suburbs, who asked not to be identified, paid $ 5000 for orders he was placed in late March and has repeatedly given a date for delivery. Each time, the furniture did not come and did not have a valid explanation.
"I've called and called," he said Thursday. "I get a different answer every time. I was really mad ..."
Samuels said he understands the customer frustration.
When a customer walked into a store, you should expect to get the goods you've paid, he said.
"Unfortunately people getting sucked up in it, but it happened," he said. "I do not take my job lightly. I have a fiduciary responsibility to make the best recovery possible. The effort is there."
www.thetimesonline.com
Process called "Assignments for the Benefits of Creditors," places where the company's assets in the hands of an Assignee / guardian.
"The difference is it's a nonjudicial process," said Howard Samuels, president of Rally Capital Services, which is appointed Assignee / guardian. "That's the general law of the drug out of court any overview .... This is the method that is faster and less expensive to get to the same end as the bankruptcy."
The company, based in Homewood - private BLR Corp., owned by Barry, Larry and Richard Slovy - reported assets of approximately $ 11.2 million and liabilities nearly $ 14.36 million on April 25 a letter to the creditor. Assets include Homewood store its values at $ 2 million and inventory was valued at nearly $ 6 million at the time of the assignment.
Since then, Bay stores have "sales campaign cash" and now "out of business sale." In addition to Homewood, other Bay stores are located in Hobart, Hoffman Estates, Aurora, Lake Zurich and Mokena.
Companies listed creditors are: secured debt of $ 6.67 million, $ 99,500 lease, warehouse and delivery charges of $ 8087 million, and general and unsecured debt of $ 6.78 million.
Together with suppliers and vendors, creditors are not safe now includes hundreds of customers with undelivered furniture on order from January, February and March.
The majority of customers with furniture in order to get their merchandise, Samuels said Thursday. Most of - 50-60 - from major furniture manufacturer with exceptional command works with Samuels, but some do not, he said. Customers who do not have furniture or choose to not "will get a refund in accordance with the process," said Samuels.
Customers will "receive a special administrative claims and priority among other general creditors and not safe," he said.
American Chartered Bank of Schaumburg, which has $ 6.67 million in loans for the Bay, is the company's secured creditors and, thus, will become the first creditor to receive payment from the sale of assets Bay.
The liquidation will conclude at the end of September. At that time the lender will be paid in order of priority, said Samuels.
"We made a big effort to close the gap (between the asserted and obligations,)" said Samuels. "My job is to get the best and most fair to return the assets. The market will determine how well we do."
One customer who had not received ordered goods said she was outraged by the situation. A woman in the northern suburbs, who asked not to be identified, paid $ 5000 for orders he was placed in late March and has repeatedly given a date for delivery. Each time, the furniture did not come and did not have a valid explanation.
"I've called and called," he said Thursday. "I get a different answer every time. I was really mad ..."
Samuels said he understands the customer frustration.
When a customer walked into a store, you should expect to get the goods you've paid, he said.
"Unfortunately people getting sucked up in it, but it happened," he said. "I do not take my job lightly. I have a fiduciary responsibility to make the best recovery possible. The effort is there."
www.thetimesonline.com
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