Sunset Trading files Chapter 11, but remains open
Sunset files Chapter 11; antidumping duties hurt business
-- Kids Today, 7/3/2007 5:47:00 AM
Youth and casual furniture specialist Sunset Trading has filed for Chapter 11 bankruptcy protection but plans to remain in business, according to a report in the New Hampshire Business Review.
The report said that Sunset Trading parent GPS Furniture International has some $1.2 million in receivables and owes $1.6 million to Wells Fargo Bank, $203,000 to CIT and $566,000 to company CEO Gary Chase. The report said the company also has another $1 million in unsecured claims.
The report said that GPS received court approval for Wells Fargo to release about $500,000 so it could pay its workers and also pay for inventory held in containers in Worcester, Mass.
GPS President Harry Leighton told the paper that the company suffered a setback when high antidumping duties on bedroom furniture were applied to two Chinese source factories. Several customers switched to other suppliers, the report said.
Leighton also told the paper that the furniture business is suffering because of a slowdown in the housing market as well as competition from big-box retailers such as Wal-Mart and Ikea.
GPS started in 1988, primarily as a waterbed, futon and master bedroom resource. It acquired Sunset Trading in 1997.
Leighton and Gary Chase purchased Sunset Trading from business partners Kenneth Smith and Gary Stanieich in 2005. At the time, the company said 70% of its revenues were in casual dining, with the remainder in youth and juvenile furniture. The company ultimately sought to grow its youth business, largely through an in-stock, quick ship warehousing program.
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