Scan Furniture Files For Bankruptcy. Judge To Approve Borrowing Plan

Furniture World Magazine

The Washington Business Journal reported that Maryland based furniture company Scan International, Inc. with five retail furniture store locations in the Washington, DC and Baltimore trading areas, filed for Chapter 11 bankruptcy protection. The article noted that, "Revenue at the company dropped from $25 million to $17 million from 2005 to 2007, according to court papers filed Wednesday in U.S. Bankruptcy Court in Baltimore. Scan officials attribute the decrease partly to "the decline in the housing market and the loss of business as a result of other furniture retailers ceasing operation and liquidating inventories at deep discounts," documents show." The full text can be found at http://www.bizjournals.com. A Baltimore Sun ran an article giving a timetable for the proceedings and providing information on the timetable for the handling of customer deposits and a possible financing package of 1.7 million dollars offered through Wells Fargo Business Credit. This article noted that, "A Baltimore bankruptcy judge said yesterday that furniture seller Scan International, which filed for Chapter 11 protection this week, could pay employees the money they're owed and indicated that he soon would approve the company's borrowing plan so it could fill hundreds of outstanding customer orders. "During yesterday's proceedings, Judge James F. Schneider also set a hearing for next week to approve Rockville-based Scan's going-out-of-business, liquidation-sale plans. "The company, which has two retail locations in Virginia and three in Maryland, expects to begin selling off its merchandise early next month to raise funds. The sale will likely extend into March. Scan's Maryland stores are in Rockville, Columbia and Lutherville." The complete story can be found at http://www.baltimoresun.com in the business section.