Great American, Hudson managing Domain liquidation
By Clint Engel -- Furniture Today, February 18, 2008
Norwood, Mass. — Liquidation of retailer Domain Home began last week as a bankruptcy court cleared the way for the sale.
Liquidators Great American Group, the stalking horse bidder, and Hudson Capital Partners are jointly managing the sale. Hudson executives became minority investors in Domain when it was acquired from Aga Foodservice last year.
The retail value of the inventory to be liquidated is about $20 million, according to a news release.
Jeff Yellen, president of Great American's furniture division, said the sale will run until the inventory is cleared out — probably three to five weeks, or possibly longer at Domain's largest showrooms.
"Domain has been a landmark for consumers who appreciate high quality home design, and the liquidation sale provides a final opportunity to take advantage of this incredible home furnishing resource," Jim Schaye, Hudson Capital Partners co-founder, said in the release.
Schaye also is managing partner of Golden Acquisition, the private equity firm formed by Hudson Capital's executives to buy a stake in Domain last year.
The sale will involve all Domain locations in Massachusetts, Connecticut, New Jersey, New York, Pennsylvania, Maryland and Virginia. After the liquidation, all the stores will close.
Domain, which filed for bankruptcy protection Jan. 18, is ranked No. 93 on Furniture/Today's Top 100 with estimated furniture, bedding and accessories sales of $66.3 million in 2006 at 29 stores. Total revenues were estimated at $71.3 million.
A planned auction of its assets in bankruptcy court two weeks ago was called off because of lack of qualified bids. Hudson joined Great American for the liquidation prior to the court's approval of the sale.
"The bid got a little rich, and the terms changed, and it was decided they (Great American) wanted to share the risk a little bit," said Hudson Capital's Schaye. "So we agreed to join up with them."
According to bankruptcy documents, Great American was to pay Domain 64 cents on the dollar cost value of the inventory valued between $8 million to $10 million. Yellen wouldn't say how much the sales are estimated to generate.
Domain was founded in 1985 by CEO Judy George, who most recently was leading an effort to find investors to lift the company out of bankruptcy as a going concern. She has not returned calls seeking comment.
