Furniture Factory Warehouse Files Chapter 11

Home furnishings retailer Furniture Factory Warehouse, which operates 12 stores in South Texas, has filed for Chapter 11 Bankruptcy protection due to unfavorable financial conditions and a consistent decline in furniture sales. The retailer has closed all of its stores and distribution facilities pending the bankruptcy court’s approval of Furniture Factory Warehouse’s “Bankruptcy Going Out of Business Sale” which will liquidate the company’s inventory to repay creditors.  Many customers are peeved at the retailer’s unexpected store closings and Chapter 11 bankruptcy filing.  Many have contacted consumer agencies complaining that they have paid in full for furniture they have yet to receive. And while representatives of the bankrupt company have promised that consumers will have an opportunity to come into the warehouse and pick out furniture, the reality of that happening is not so clear.  Under the rules of Chapter 11 bankruptcy and other bankruptcy chapters, priority creditors must be paid first.  It is not yet clear exactly how much debt the Furniture Factory Warehouse owes but it is a safe bet that there are large debts owed to creditors who take a priority over the customers.

Customers of Furniture Factory Warehouse can expect the following:

  1. A notification from the bankruptcy court and/or the bankruptcy attorneys representing the Furniture Factory Warehouse about the Chapter 11 bankruptcy filing. This notification should list you as a creditor and state how much you are owed.
  2. You will need to file a claim with the bankruptcy court if you want to receive payment on any debt the Furniture Factory Warehouse owes you. If you are not listed as a creditor in the bankruptcy case you will not have any chance of getting paid.
  3. If you are owed money by Furniture Factory Warehouse, it is a possibility that you may not receive payment or full payment in the bankruptcy.

Customers can also file a consumer complaint with the Texas Attorney General at but doing so does not guarantee that you will receive payment from the bankrupt company.