Three decades of selling both furniture and interior design services has ended for upscale furniture retailer.
Under a mountain of debt and declining sales, Mastercraft Interiors, filed Chapter 11 bankruptcy protection Monday, firing 150 people in four locations including Annapolis. Leaves bankruptcy behind the bulge of the unpaid creditors and lost customers' deposits.
"We are very saddened by this decision," company founder and president Douglas Gomez said in a prepared statement. "In recent months we have experienced a dramatic decline in sales levels."
Mr. Gomez, who started a business based in Rockville with brother Dan in 1977, cited the change in consumer buying habits and new home furnishings concept behind the forces that cause retailers to stop. Retailers selling high-end brands such as Stickley, Kindel, Hickory Chair and Drexel Heritage.
Mr. Gomez said that he was seeking a buyer but could not find one.
Mastercraft is a former member of the Top 100 companies from Furniture Today, a trade journal.
Bankurptcy According to the filing in federal court, the company listed $ 10.6 million in assets and $ 25.5 million in liabilities. Sales last year fell 10 percent, fell to $ 45.3 million, compared to $ 50.5 million in 2004, was recorded. In the first quarter of 2006, sales were led to $ 8.6 million, a move that would put it at about $ 35 million for the year.
More than 300 creditors are listed. Among the list of the 20 largest unsecured creditors, and Gomez, owed $ 1.2 million for consultants to work for the next decade.
Mastercraft operated stores in Rockville, Fairfax and Alexandria. Recently closed shop in Leesburg, Va., and one in Gaithersburg earlier this year. Company says it will operate the warehouse and clearance center of Beltsville.
Forest Drive in Annapolis store closed last week. A sign posted said suspended business inventories. It's not known how many employees work there.
Eileen Gross of Davidsonville learn about the closure in the news, on the same day he opened the letter informing him that Mastercraft had filed for bankruptcy.
Ms. Gross ordered two pieces of Stickley furniture, the precious arts and crafts style TV console and coffee table, for $ 3,000. He left $ 1700 deposit, he said.
Now, he wondered if he would see the money, or better, the furniture again.
"You can not buy these goods at Kmart," Ms. Gross said. "This furniture is not available just anywhere." Www.hometownannapolis.com
Under a mountain of debt and declining sales, Mastercraft Interiors, filed Chapter 11 bankruptcy protection Monday, firing 150 people in four locations including Annapolis. Leaves bankruptcy behind the bulge of the unpaid creditors and lost customers' deposits.
"We are very saddened by this decision," company founder and president Douglas Gomez said in a prepared statement. "In recent months we have experienced a dramatic decline in sales levels."
Mr. Gomez, who started a business based in Rockville with brother Dan in 1977, cited the change in consumer buying habits and new home furnishings concept behind the forces that cause retailers to stop. Retailers selling high-end brands such as Stickley, Kindel, Hickory Chair and Drexel Heritage.
Mr. Gomez said that he was seeking a buyer but could not find one.
Mastercraft is a former member of the Top 100 companies from Furniture Today, a trade journal.
Bankurptcy According to the filing in federal court, the company listed $ 10.6 million in assets and $ 25.5 million in liabilities. Sales last year fell 10 percent, fell to $ 45.3 million, compared to $ 50.5 million in 2004, was recorded. In the first quarter of 2006, sales were led to $ 8.6 million, a move that would put it at about $ 35 million for the year.
More than 300 creditors are listed. Among the list of the 20 largest unsecured creditors, and Gomez, owed $ 1.2 million for consultants to work for the next decade.
Mastercraft operated stores in Rockville, Fairfax and Alexandria. Recently closed shop in Leesburg, Va., and one in Gaithersburg earlier this year. Company says it will operate the warehouse and clearance center of Beltsville.
Forest Drive in Annapolis store closed last week. A sign posted said suspended business inventories. It's not known how many employees work there.
Eileen Gross of Davidsonville learn about the closure in the news, on the same day he opened the letter informing him that Mastercraft had filed for bankruptcy.
Ms. Gross ordered two pieces of Stickley furniture, the precious arts and crafts style TV console and coffee table, for $ 3,000. He left $ 1700 deposit, he said.
Now, he wondered if he would see the money, or better, the furniture again.
"You can not buy these goods at Kmart," Ms. Gross said. "This furniture is not available just anywhere." Www.hometownannapolis.com
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