Retailer ABC Carpet & Home Facing Takeover by Lender
The home goods retailer — hit hard by the pandemic and real estate problems — is unable to pay its bills, and an investor group with experience in home and carpet retailing may take it over, either through bankruptcy or out-of-court restructuring. The potential takeover comes after an offer last year from private equity firm MHR Fund Management fell through in April, Bloomberg reported.
“We are actively engaged in an advanced process with strategic investors that will allow us to continue our legacy of providing our customers with a unique home furnishing shopping experience,” Aaron Rose, ABC Carpet & Home CEO, said in a statement.
ABC also operates a popular restaurant business, including ABC Kitchen, which wouldn’t be affected by a restructuring, according to Bloomberg.
The company’s headquarters is located at 888 Broadway, between East 18th and East 19th streets in Manhattan, and occupies 78,000 square feet in Industry City in Building 19 at 168 39th Street, Commercial Observer reported.
But it’s strong physical presence might have been its downfall. The company lacked a robust online business, and as affluent locals fled New York during the pandemic, it’s in-person sales dried up, Bloomberg reported.
“When COVID-19 shut us down, our online platform, which was in development, was not yet ready to address the massive shift towards virtual shopping,” Rose said. “As we continue to progress to the new landscape, we are working with potential partners who will help ensure the future of ABC Carpet & Home.”
Since the planned sale fell through, the company has been working with advisers from B. Riley Financial and law firm Greenberg Traurig to find new financing or a buyer for more than a year, Bloomberg reported.
B. Riley, Greenberg Traurig and MHR did not immediately respond to requests for comment.
Update: This story has been updated to include comments from Aaron Rose, CEO of ABC Carpet & Home.
Celia Young can be reached at firstname.lastname@example.org.