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Roomstore wants to auction off assets

Monday - 6/11/2012, 7:17am  ET

RICHMOND, Va. (AP) - The RoomStore Inc. plans to sell its assets at an auction, including the inventory at its stores.

The Goochland County-based retailer filed for Chapter 11 bankruptcy protection last December. It has asked a federal Bankruptcy Court judge to approve the asset sale. The auction would be held June 25.

President and CEO Stephen Giordano tells the Richmond Times-Dispatch that the company is being offered for sale as a whole or in parts. Bid packages were sent to potential buyers last week.

The RoomStore also plans to sell its 65 percent stake in bedding chain Mattress Discounters.

Proceeds from the sales would be used to pay off creditors.

The RoomStore has 28 stores in Virginia, Maryland, North Carolina and South Carolina.

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Information from: Richmond Times-Dispatch, http://www.timesdispatch.com


(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)