ABC Carpet & Home is preparing to file for bankruptcy this week – and already has suitors lined up to get it out of financial distress, people familiar with the matter told The Post.
In recent months, the luxury furniture company had retained the services of senior restructuring lawyers from Greenberg Traurig and investment bank B. Riley Financial to explore its strategic options, as The Post reported. for the first time. He will likely hold an auction for his assets, including two huge stores in the Big Apple, where he has ruled for 125 years.
Several interested buyers have already submitted bids, including a consortium of Iranian carpet dealers and private equity firm Windsong Global in partnership with brand licensing firm Hilco Brands. This group is hoping to be selected as a stalking horse bidder, a source with knowledge of the situation told The Post. Windsong and Hilco recently became the hunter bidders for premium footwear brand Aquatalia.
Burch Creative Capital, led by Chris Burch, who co-founded Tory Burch LLC and who was previously married to the famous designer, said a source familiar with the matter. It is not clear if Burch submitted an offer and he did not immediately respond to comments.
Hilco and Windsong declined to comment.
“The keen interest in the company gave ABC Carpet assurances that an auction process would be successful,” the source told The Post.
Aaron Rose, managing director of the retailer, did not address the bankruptcy filing in a statement provided to The Post on Wednesday: âABC Carpet & Home is in advanced talks with a strategic investor who has funded the company’s operations and is developing a long-term financial plan that will perpetuate the iconic legacy of the company. Business operates as usual during this process.
Known for its whimsical items like a $ 325 handmade rose crystal perfume bottle or a $ 595 charcoal velor throw, as well as its thousands of dollar rugs, ABC Carpet has been hit particularly hard by the pandemic, because its expensive merchandise does not lend itself to e-commerce, according to retail experts.
Her customers prefer to shop in person, touch and ogle the extravagant and exotic wares artfully displayed at her 888 E. 19th St. flagship and Brooklyn outlet store.
Store owner Paulette Cole has used a substantial amount of her personal funds to keep her family business afloat over the past year, sources told The Post. If the business is sold, it could be the first time in more than a century that a descendant of carpet merchant Sam Weinrib has not been involved in the business.
During the pandemic, the company was more than $ 1 million behind on rent, forcing an entity that holds its leases to file for bankruptcy in July. That entity, AMMA421, listed Cole as its principal, according to court documents.
Cole acknowledged in press interviews – including with The Post – that the retailer’s Achilles heel was her e-commerce background, which she has tried to build on in recent years. She also reduced the company’s physical presence by closing two stores in the city – a factory warehouse in the Bronx and a carpet store across from the flagship store, which also lost some of its floors as part of the move. ‘an agreement with its owner in the past. several years.
Earlier this year, an offer from private equity firm MHR Fund Management failed after reaching advanced stages, according to a Bloomberg report.