Roomstore seeks approval of sale procedures for inventory, fixtures

By Jim Witters

Wilmington, Del., March 30 - RoomStore, Inc. is seeking approval of procedures for selecting an agent to oversee the going-out-of-business sales at its 10 Texas stores and for selling furniture and fixtures after the stores are closed, according to documents filed Thursday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The stores being closed are in the Texas cities of Arlington, Dallas, Denton, Fort Worth, Grand Prairie, Grapevine, Mesquite, Plano, Temple and Waco.

The cash bids are for acquiring the inventory and debtor-owned furniture, fixtures and equipment and conducting the going-out-of-business sales.

The guaranty percentage in the first overbid must be at least 0.25% higher than the guaranty percentage in the opening bid, as determined by the debtor at the start of the auction. Successive bids must be in increments of at least 0.25%.

The bid deadline is 2 p.m. ET on April 6.

If needed, an auction will be conducted at 11 a.m. ET on April 9.

A hearing to approve the results of the auction is scheduled for April 10.

The company also is asking the court to "waive compliance with any lease restrictions, sale laws and fast-pay laws potentially applicable to the going-out-of-business sales, because such provisions unduly restrict the debtor's ability to maximize the value of its estate."

Richmond, Va.-based home furnishing retailer RoomStore emerged in 2005 as the surviving company from Heilig-Meyers Co.'s Chapter 11 case. The company filed for bankruptcy on Dec. 12. The Chapter 11 case number is 11-37790.

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