Rosa's Home Stores' going-out-of-business sale is proceeding as planned, and disagreements over the company's store leases have been resolved, clearing the way for the retailer's bankruptcy to continue, attorneys told the U.S. Bankruptcy Court on Tuesday.
Following its bankruptcy filing in early December and the sale of its inventory to a liquidator 11 days later, the furniture store chain's 135-day liquidation sale began Jan. 6 and "has been moving smoothly," said Camille W. Hill, an attorney for Rosa's.
"We haven't hit any oppositions or any objections since," Hill told U.S. Bankruptcy Court Judge Michael Kaplan during a hearing, in which she and two other attorneys participated by phone.
She and Robert A. Boghosian, an attorney for liquidator Planned Furniture Promotions, also said that officials for the two companies held "extensive" talks with landlords Developers Diversified Realty of Cleveland and the McKinley Mall to work out agreements over store leases. "That issue is resolved," Boghosian said.
Cheektowaga-based Rosa's filed for Chapter 11 bankruptcy reorganization Dec. 9, citing heavy competition from national retailers and significant ongoing losses. Kaplan approved the liquidation sale at a Dec. 21 hearing, despite objections from unsecured creditors, the U.S. bankruptcy trustee and the State Attorney General's Office. Tuesday's hearing was scheduled to review any remaining objections.