RoomStore: Furniture Asset to run 10 business sales in Texas

By Caroline Salls

Pittsburgh, April 13 - RoomStore, Inc. received court approval to enter into an agency agreement under which Furniture Asset Acquisition LLC will oversee the going-out-of-business sales at 10 Texas stores and for the sale of 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 affected stores are in the Texas cities of Arlington, Dallas, Denton, Fort Worth, Grand Prairie, Grapevine, Mesquite, Plano, Temple and Waco.

Under the agency agreement, RoomStore will receive 100% of the cost value of merchandise located in the inventoried locations as a guaranty of the agent's performance.

In addition, the agent will pay the company $1.7 million for the transfer of designation rights, $275,000 for the transfer of an exclusive license and $25,000 for the transfer of Texas customer lists.

After payment of the guaranteed amount, designation rights amount, exclusive license amount, customer list amount and all expenses, the agent will be entitled to keep any remaining sale proceeds.

All merchandise remaining after the sales will become the property of the agent.

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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