Barcalounger Files Chapter 11

by Deidre Woollard (RSS feed)
May 20th 2010 at 6:01PM

Barcalounger, a brand famous for its reclining chairs and its sister company, contract furniture source American of Martinsville, have filed for Chapter 11 bankruptcy protection. Furniture Today reports that the joint filings were made a little more than a month after the two companies shut down their factory in Martinsville, Virginia. Parent company Hancock Park Capital has agreed to sell the companies to another affiliate of Hancock for $1.5 million. It is the largest unsecured creditor with claims totaling $32.4 million but will waive the claim if the sale to its affiliate is approved. The sale has to be approved by the bankruptcy court which would hold an auction if another bidder is interested.

Papers filed cite the economy and a downturn in furniture sales as a reason for the filing. Hancock Park bought Barcalounger in 2005 and purchased American of Martinsville from La-Z-Boy in 2006. The investment firm shut down Barcalounger's factory in Rocky Mount, N.C., about a year ago and moved production to the American of Martinsville plant. That factory was closed without warning on April 16. Barcalounge began making reclining chairs in 1940 and now also supplies chairs for home theaters.

Tags: american of martinsville, bankruptcy, Barcalounger, chapter 11, furniture

Filed under: Decor

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Reader Comments (Page 1 of 1)

OTHRO DREW May 22nd 2010 2:24PM

The oldest piece of furniture in my house is my barcalounger. I"ve had it for over 35 years, and I can't believe it is in such good condition and it still looks good. When you make a product this good you are not going to get to many repeat customers.
I am sorry hear about their demise.

Alan W. May 22nd 2010 3:36PM

Gee - is this going to send a message to greedy, corrupt CEOs? Nah - they already got it!

cathycough May 22nd 2010 3:24PM

Our Barcalounger broke in its 11 month of life! The company refused to fix it. No wonder they are out of business. Our LazyBoy brand recliner is over 25 years old and is the best chair in the house.

jeffnow329 May 22nd 2010 4:57PM

Funny this article is here. I bought a barcalounger as did a friend of mine.Very comfortable, how ever on both of them around the same time the seat supports fell apart. He paid $200 to have a private furniture repairman fix it. I bought a lazy boy and we shall see. The barcalounger $800 the lazy boy $1500. If it lasts it will be worth it if not I was raped.

DJGary@Platinum Ent. May 22nd 2010 7:03PM

$1,500 for a chair? Raped is a euphemism...SCHMUCK is more like it.

Jim Fedullo May 22nd 2010 7:00PM

I have been ih the medium & hi-end furniture business for almost 40 years and owned my own stores in Nashville, Tn, managed hi-end stores in Mo, Az, Nv & Ca . I have worked w/ well over 600 lines and have seen many of them fold, merge or cut back to the point of being non existant. When many of these co's went out of the country to mfg their lines they didn't expect the disaster that followed to happen on such a grand scale. Everyone it seemed moved, cut back and with the loss of so many jobs, they no longer have people w/ funds to buy their product. Gor the co's who moved out of the country,SHAME ON YOU, you deserve what has happened to you bit look at the loss's that you caused to your fellow Americans. If you think that I am wrong I have advanced degrees in bus & finance to back me up. You just got to greedy and you deserve to gp BK, I sure as hell wouldn't buy your product. Before I buy anything, and I have done this for years, I ck where its made & if its not here, I pass on it.

robert May 23rd 2010 5:19AM

I see buying a company but you bought from lazy boy there the ones that waited after I show my mom and dad chair to in the early 70s the one that now has the pop holder ash tray magizine holder I still have the old picture and patten paper the use some of the chairs idea but left out two inportaht things on the chairs to make them sale like hot cakes if you read this get a hold of me Would be glad to see them made in usa still shouldnt lose jobs in the state lets put people to work and yes a small price to show lazy boy company to start paying for what they waited to take