Holladay House will liquidate its assets

Holladay House Furniture has failed in its attempt to restructure and will liquidate its assets.

The Aylett furniture retailer has asked a federal judge to convert its bankruptcy from Chapter 11 to Chapter 7, clearing the way for its liquidation.

The company originally filed for bankruptcy in December 2007.

In the past year two years, the company has tried to restructure and generate the money needed to stay afloat, but hasn't be able to, according to Roy M. Terry Jr., an attorney with DurretteBradshaw PLC, the firm representing the business.

"They had made every conceivable effort," he said. "They came to the realization that the hole was getting deeper." Terry said three special sales events designed to generate profits were unsuccessful, as were several attempts to obtain outside financing.

The last one fell through in the past several days. U.S. Bankruptcy Judge Kevin R. Huennekens will hear the case Nov. 24.

Calls to the Aylett store yesterday afternoon went to a voice mail that said it was closed "for inventory."

Terry said that there are some outstanding orders, but he has been told the "intent is [for the orders] to filled or refunded."

The first Holladay House store opened in late 1951 in Henrico County, but it closed in 1980 when the owners moved operations to Aylett, in King William County. Richard Plunkett bought the business in January 1998.

In 2006, the company opened a 21,000-square-foot store in the Westland Shopping Center on West Broad Street near Parham Road in Henrico. It closed last year.

The company had about 10 employees, according to a court filing.

Contact Louis Llovio at (804) 649-6348 or .