Gracious Home in Chapter 11 pre-pack

HTT Staff -- Home Textiles Today, 8/15/2010 11:00:59 AM

New York - Gracious Home on Friday (Aug. 13) filed a pre-pack Chapter 11 plan for reorganization under bankruptcy. It also entered an agreement with NewAlliance Commercial Financial, which has acquired the senior secured loan from the retailer's previous lender and will provide debtor-in-possession financing.

"We want to assure our customers, our employees, our suppliers and our community that Gracious Home is operating - business as usual," said Jordan Smilowitz, president and chief operating officer, in a prepared statement.

The company also appointed into senior positions two principals from Meridian Ventures, a turnaround management and restructuring firm. Thomas Shull becomes Gracious Home's ceo and Paul Jen senior vp of strategic planning.

"We intend to emerge from these proceedings with a significantly improved balance sheet and, consequently, greater operating flexibility. I am confident in Gracious Home's future. The new direction we have set is comprehensive, and our product assortment will continue to be expansive and our dedication to customer satisfaction unwavering," said Smilowitz.

According to court filings, home textiles suppliers among the top 10 creditors included: John Matouk & Co., owed $165,883; Habidecor & Abyss, $136,173; Yves Delorme, $132,350; and Scandia Down, $92,860.