Bankruptcy and liquidation mark the end of an era for Altmeyer Home stores – Sourcing Journal
An 81-year-old family-owned regional homeware chain filed for bankruptcy last month.
On July 11, Altmeyer Home Stores voluntarily filed for Chapter 7 bankruptcy to wind down the company’s operations. The Delmont, Pa.-based bed and bath retailer listed $2.0 million in assets with liabilities of $791,791.50.
The petition filed in a bankruptcy court for the Western District of Pennsylvania says Altemeyer’s gross revenue for the fiscal year ended December 21, 2020 was $6.0 million and $5.5 million in 2019.
Instead of documenting Altemeyer’s top 20 unsecured creditors, the filing included a list of creditors submitted last week. However, the unsecured claims total $296,980, although the court document says there will be nothing left to pay these creditors after administrative expenses are paid.
Among the commercial creditors were a number of factoring companies, including CIT Commercial Services Inc., Milberg Factors, Mohawk Factoring LLC and Rosenthal & Rosenthal. CIT was listed as a factor for Lintex Linens Inc. (ahead $1,669.50), COBRA Trading ($9,436.50), Stylemaster ($18,432.60), and Kassatex ($32.00). Milberg was listed as a postman for Arlee ($783.00), Garland Carpet & Rug ($795.00), and Lichtenburg ($411.60). Mohawk Factoring LLC supplier accounts were not listed, but the amount owed was $3,928.29. Telebrands, which owed $2,220, was the only factored account listed for Rosenthal.
The court document also listed six operating stores throughout Pennsylvania. Other listed creditors include certain sellers, owners and service providers.
Robert C. Altmeyer, chairman, is the fourth generation to run the bankrupt chain, which has made a name for itself selling household items such as bedding, window treatments, rugs and kitchen accessories. On Tuesday, the company’s bedbathhome.com website was down for maintenance, with a message that read, “We are aware of the technical issues on our site and are working to resolve them as quickly as possible.”
The filing gave no reason for bankruptcy, but many smaller retailers struggled to recover from Covid-19, which triggered higher supply chain costs and delivery disruptions. Altmeyer’s bankruptcy filing follows ABC Carpet & Home’s Chapter 11 filing in the home sector in September last year, although the New York company’s problems began before the pandemic hit. Two months later, ABC was acquired by a consortium of investors including Paulette Cole, fourth-generation owner of the door-to-door retailer. Bed Bath & Beyond, meanwhile, is hoping a change of guard can get the homewares giant back on track after a much-lauded turnaround effort so far hasn’t quite come to fruition.
Industry watchers expect bankruptcies to pile up in the second half of the year as rising distressed debt coupled with soaring inflation and bloated inventories paint a ugly board for retail.