Furniture brand Jennifer Convertibles
filed for Chapter 11 bankruptcy protection over the weekend in New York. The popular seller of affordably priced sofabeds and other furniture listed assets of around $26 million and debts of $46.4 million. Furniture Today reports
that the brand has already reached an agreement with its largest creditor, Chinese upholstery producer Haining Mengnu, in order to keep products coming to the company. The terms of the deal require Mengnu to continue to supply the retailer and convert some of the pre-petition debt into common equity of the company. The company plans to continue operations through the reorganization.
Jennifer Chairman and CEO Harley Greenfield told Furniture/Today that the company is making plans to leave the Atlanta, Chicago, Philadelphia and Boston metro area markets as well as the states of Michigan, Florida and North Carolina. A press release stated that "the expected plan of reorganization does not contemplate that there will be any continuing value for the present stockholders of the Company."