Chicago – The RoomPlace, a Chicago-based retailer since 1912, has announced a Chapter 11 restructuring that will include the closing of eight stores. In a statement announcing the restructuring the company said the filing would enable it to, “align its costs with its projected sales and economic realities.
“What was once viewed as taboo is now a strategic way to realign and strengthen a business,” said Bruce Berman, CEO of The RoomPlace. Berman pointed to declining retail sales across the country and noted that the furniture industry has been particularly challenged.
“We’re making the tough decisions now to ensure we’re around for another 100 years,” he said.
That decision includes winding down operations in outlying markets to concentrate on strengthening its 18 Chicagoland stores. As a result, six locations in and around Indianapolis, one store in Kenosha, WI and one store in Peoria, IL will be closed.
“As a family-run business with strong community ties, it’s not an easy decision to close stores and impact the people who work, shop and live in the affected communities,” said Berman.
As part of the wind down in Indianapolis, Kenosha and Peoria, The RoomPlace will contract with Planned Furniture Promotions (PFP) to conduct store closing sales. Existing orders placed prior to February 2 will be fulfilled as promised. According to a spokesperson for the company 83 employees will be impacted by the closings. Dates have not been set for the closing of those stores at this writing. The spokesperson indicated that the store closings would enable the company to achieve profitability.
For the 18 remaining Chicagoland locations, it will be business as usual, according to the company.
“We are determined to become better and stronger in Chicagoland by continuing to offer consumers the largest selection of stylish brands at the market’s best prices,” Berman said. “This is not an end; it’s a new beginning for Chicagoland.”