Rhodes granted court OK to reject headquarters lease in favor of free office space

By Caroline Salls

Pittsburgh, April 4 - Rhodes, Inc. obtained court approval to reject the lease on its corporate headquarters in Atlanta effective March 31, according to a Tuesday filing with the U.S. Bankruptcy Court for the Northern District of Georgia.

The landlord is Delta Life Insurance Co.

According to the motion, under Rhodes' asset purchase agreement with Rhodes Acquisition LLC, Rhodes Acquisition agreed to provide office space in Atlanta for five representatives of Rhodes for up to one year following the closing of sale, free of charge.

As a result, Rhodes sought to reject the corporate headquarter lease because it has no value to the company, its creditors or its estate.

Rhodes said the office space provided by Rhodes Acquisition will be sufficient to complete the liquidation of its remaining assets and to implement its liquidation plan.

Rhodes, an Atlanta-based furniture retailer, filed for bankruptcy on Nov. 4, 2004. Its Chapter 11 case number is 04-78434.

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