Daily News: July 27, 2012

Court Grants RoomStore Request to Convert to Chapter 7 Liquidation

Furniture Today reported that U.S. Bankruptcy Judge Douglas Tice in the U.S. Bankruptcy Court in the Eastern District of Virginia has granted approval to covert RoomStore’s bankruptcy case from a Chapter 11 to a Chapter 7 liquidation.

Following this ruling, the court will appoint a trustee to oversee the liquidation of the rest of the company, it’s stake in Mattress Discounters and its distribution center, the article said.

RoomStore has been repeatedly requesting the case be moved to a Chapter 7, but the company’s unsecured creditors committee was against this move. The judge’s decision ends the back and forth between the company and the committee with allegations raised against both sides.

To read the Furniture Today article, click here.

Previously on abfjournal.com:

Hilco, Others Conduct GOB Sales for Twenty RoomStore Locations, Monday, July 02, 2012