Our History
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RoomStore was founded in 1992 by a renowned furniture family that established its first retail store in 1910. Today RoomStore has 28 stores serving the mid-Atlantic from Maryland to South Carolina.
The RoomStore concept makes furnishing your home easier by offering an enjoyable one-stop shopping experience for all your home furniture and bedding needs. You'll leave RoomStore with the confidence that you've purchased the very best merchandise from the industry's leading manufacturers, at the best price possible.
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Our Recent Restructuring
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To Our Valued Customers:
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While the RoomStore has a long history of being a leader in the home furnishings industry we have recently faced significant financial challenges. Despite our aggressive efforts to address these conditions, earlier today our company filed a voluntary petition for reorganization under chapter 11 of the United States Bankruptcy Code. This filing will give us the time and resources to address our financial challenges while continuing to provide you, our Customer, with the excellent values in home furnishing products and the exceptional service that you have come to expect from the RoomStore.
It is important for you to understand that the RoomStore is not going out of business. Our stores are operating as normal, and we look forward to continuing to take care of your furniture shopping needs.
We are maintaining our commitment to bringing the focus back to you, our Customer, and making it much easier to shop with the RoomStore. In fact, everything we do for our Customers is as important to us as ever.
We have placed information on our Web site (See our FAQ's) that should help answer questions that you may have about your local RoomStore. Or, you may e-mail us at Reorganization@RoomStore.com.
In closing, I want to thank you for your continued patronage. We look forward to serving you and your community for many years to come.
Sincerely,
Stephen Giordano President & Chief Executive Officer
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RoomStore, Inc. Announces Refinancing; Company Files Chapter 11 Petition to Facilitate Reorganization Efforts; Business and Operations Continue As Usual
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(Richmond, Virginia -- December 12, 2011) – RoomStore, Inc. announces a voluntary chapter 11 petition, filed in Richmond, Virginia on December 12, 2011. RoomStore filed for reorganization as a continuation of efforts to improve its business plan. RoomStore has also secured a commitment from its current lender, Wells Fargo Bank, for a $14 million Debtor-In-Possession credit facility. The restructuring process will facilitate RoomStore's financial and operational plans, which are designed to restore the Company to long-term financial health. The decision to file for re-organization comes after newly appointed Chief Executive Officer, Stephen Giordano, took the helm on November 14, 2011. A veteran industry leader with over thirty years in the furniture business, Giordano was brought in to execute the reorganization and turnaround of the business. The board of directors also named Steve Gidumal of Virtus Capital, as the company's new Chairman of the Board. The new board consists of Giordano, Gidumal and furniture industry expert Ron Kaplan. "RoomStore is a viable and recognizable brand that is an established leader in the home furnishings industry. Our dedication to providing our customers with excellent value in home furnishings will provide a strong foundation as we grow and improve during restructuring," says Giordano. RoomStore has engaged Lowenstein Sandler PC and Kaplan & Frank, PLC as counsel and periodic updates on the reorganization will be made available. RoomStore currently has 64 stores and will continue to operate its stores in the ordinary course of business while completing its restructuring, and will also retain its interest in Mattress Discounters Group, LLC.
# # # About RoomStore RoomStore was started in 1992 by several members of the Levitz family in Dallas, Texas. A leader in the home furnishing industry, it currently operates 63 retail stores in the states of Alabama, Florida, Maryland, North Carolina, Pennsylvania, South Carolina, Texas, and Virginia. RoomStore is a 65% shareholder in Mattress Discounters Group, LLC ("MDG"). Its MDG segment operates 79 bedding stores in the states of Alabama, Virginia, Maryland, the District of Columbia, and Delaware. Visit the company at www.roomstore.com for more information.
Forward-Looking Statements. This press release includes "forward looking statements" as defined by the Securities and Exchange Commission (the "SEC"). Forward-looking statements include all statements that do not relate solely to historical or current facts. These forward-looking statements are based on the current plans and expectations of our management and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those
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