Houston Attorneys:Board Certified Bankruptcy Lawyer

713-623-4242

Debt Management Law News

June 3, 2010

Furniture store bankruptcy has customers worried

SAN ANTONIO – Some upset Furniture Factory Warehouse customers are calling News 4 WOAI asking for assistance. They claim the furniture store is refusing to give them their money back and the furniture on orders they have paid in full.

“When you’ve got money down on something for layaway, you expect it to be there when you come back for it,” said frustrated customer Mike Jordan. He’s fed up over Furniture Factory Warehouse and the bankruptcy “secret” it has been keeping from its customers. “They were accepting our monthly payments,” said Jordan. ‘The furniture never was there.”

Customers showing up to Furniture Factory Warehouse stores across town are shocked to see large yellow signs in the windows reading the stores are temporarily closed for inventory. News 4 WOAI called the furniture company and learned those signs fail to mention the business is in the process of filing Chapter 11 bankruptcy. A comptroller with Furniture Factory Warehouse told News 4 WOAI the company’s decision to file bankruptcy was, in part, due to the economy.

News 4 WOAI obtained documents just filed in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division. Furniture Factory Warehouse claims it has been struggling financially since 2007. The furniture store told the court some of the problems were brought on by a theft ring operating out of its San Antonio distribution center. The company also claims it has outstanding debts to banks and creditors. The furniture store also says it owes roughly $700,000 to more than 4,500 customers.

“I think it’s very disturbing,” said customer Roland Gonzales. He says the furniture store has been giving him the run-around on a refund for weeks. He showed up to the closed store after promises he’d get a replacement part for a damaged bed. “They were holding it for us, and now we can’t get it,” said Gonzales.

News 4 WOAI also found out liquidators have been going through the stores and making plans to sell-off everything.

The representative from Furniture Factory Warehouse told News 4 WOAI customers will be taken care of. The representative also told us customers who are owed money or furniture will be given the opportunity to go into a store to get some merchandise. However when News 4 WOAI asked whether the company would notify those customers by mail or by telephone, the representative hesitated and revealed the customers could expect to receive correspondence from the bankruptcy court.

Still, no guarantees for customers like Jordan, who have already paid a pretty penny. “We may never collect our money, but at least we could put up a fight,” said Jordan.

Customers who believe their money or furniture orders may be tied up in this issue can file a consumer complaint with the Texas Attorney General at http://www.oag.state.tx.us/consumer/complaints.shtml.

www.woai.com

Sometimes, debt can be overwhelming, and bankruptcy becomes necessary.
Bankruptcy can sometimes be difficult. If you are considering bankruptcy, contact the Houston bankruptcy lawyers of Weston & Associates, PLLC at 713-623-4242


More...