Jennifer Convertibles Files for Bankruptcy
July 20, 2010
Woodbury, N.Y.-based home furnishings retailer Jennifer Convertibles Inc. announced that it has filed for Chapter 11 bankruptcy with the U.S. Bankruptcy Court for the Southern District of New York. The company has reached an agreement with its largest creditor and key foreign supplier Haining Mengnu Co. Ltd. Group, under which Mengnu will continue to supply goods to the company, and will convert a large portion of its pre-petition debt into common equity of the company. Jennifer Convertibles was unsuccessful in its efforts to obtain alternative financing that would allow it to continue operating outside of bankruptcy. This plan will allow the company to stay in business, but is still awaiting approval from the bankruptcy court.