Liquidation sales should start today at 25 RoomStore locations in five states that the Goochland County-based retailer is closing.
Bankruptcy Judge Douglas O. Tice Jr. gave the chain permission Thursday to close more than a third of its stores. The judge also approved having a group of professional liquidators handle the going-out-of-business sales at 18 of the stores. All but two are in Texas.
The liquidation sales at the seven remaining stores will be handled by RoomStore.
Three of those stores are in Virginia — the Bargain Depot clearance center on West Broad Street in Henrico County, and RoomStore locations in Leesburg and Annandale.
The liquidator group — Hilco Merchant Resources LLC, SB Capital Group LLC, Planned Furniture Promotions Inc. and Tiger Capital Group LLC — will pay 81.25 percent of the value of the merchandise at the 25 stores, according to the agreement filed in Bankruptcy Court in Richmond.
The group is paying that percentage for the merchandise at all of the stores, though it won't be conducting liquidation sales at all of them.
As a result, RoomStore should realize a net recovery of about 100 percent of the value of the merchandise, said Bruce Buechler, a lawyer with Lowenstein Sandler in New Jersey, which is handling the bankruptcy case for RoomStore.
The liquidator group also will pay about $350,000 in fees to the company, he said.
The total net recovery for RoomStore should be about $5 million, he said.
RoomStore filed for Chapter 11 bankruptcy protection in December amid declining sales and mounting losses. Once the stores close, the chain should operate 39 locations.
RoomStore received permission to designate up to 15 additional stores to close, but it must make a decision by Jan. 31.
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