Collezione files Chapter 11
Unsecured creditors owed $5.2 million
By Larry Thomas and Jay McIntosh -- Furniture Today, March 10, 2008
Newark, N.J. — Furniture importer Collezione Europa has filed for Chapter 11 bankruptcy protection, citing a sharp drop in sales after the failures of two of its biggest retail customers, Rhodes and Levitz.
Collezione said in the Feb. 29 filing that it owed more than $5.2 million to its largest unsecured creditors.
In court documents, the company said its sales declined from about $120 million in 2004 to $74 million in 2007. It blamed the rapid drop partly on the bankruptcies of two key customers, Atlanta-based Rhodes Furniture and New York-based Levitz.
Collezione said it had a net loss of about $7 million last year and that its lender has declared it in default of a covenant on its revolving credit loan.
The bankruptcy filing also includes two affiliated companies, Kelly Road Warehouse and 145 Cedar Lane Associates, both of which
