Richmond-based RoomStore Inc. files for bankruptcy

By Carolyn Shapiro
The Virginian-Pilot
© December 13, 2011

RoomStore Inc. filed for Chapter 11 bankruptcy protection Monday. As part of its filing in U.S. Bankruptcy Court in Richmond, RoomStore announced that it has secured $14 million in credit from its lender, Wells Fargo Bank.

The Richmond-based retailer plans to continue to operate its 63 stores, including locations in Virginia Beach and Newport News. It also plans to retain its 65 percent stake in bedding chain Mattress Discounters Group LLC. Chapter 11 gives a company protection from creditors while it reorganizes. RoomStore's filing shows that it has between $10 million and $50 million in assets and the same amount in liabilities. The bankruptcy follows the company's appointment of CEO Stephen Giordano, who took over Nov. 14.

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