High-End Furniture Retailer Robb & Stucky Files for Chapter 11 Bankruptcy

by Randall Reese

One of the largest "interior design driven retailers of upscale, high-end home furnishings in the United States," Robb & Stucky Limited LLLP voluntarily filed for chapter 11 protection in Tampa, Florida on Friday. The company, which traces its history to its 1915 founding in Ft. Myers as a one-store general merchandise emporium, has 24 locations in five states - Florida, Texas, Arizona, North Carolina, and Nevada. The publication has Furniture Today ranked Robb & Stucky as high as the 34th largest furniture retailer in the country.

The company reported that it has 760 employees but its last full year revenue (the year ending June 30, 2010) totaled less than $140 million - barely more than half of its revenue at the company's 2006 peak. The company's EBITDA has decreased even more significantly - falling from a high of $16.2 million for fiscal year 2005 to negative EBITDA of $14.6 million for fiscal year 2009. Unsurprisingly, assets have been decreasing over the same period, while liabilities have increased by approximately 30%.

Friday's bankruptcy filing is intended to be used to facilitate the liquidation of Robb & Stucky's assets or a sale of the assets as a going concern. Prior to filing for bankruptcy protection, Robb & Stucky entered into an agency agreement with a joint venture comprised of Hudson Capital Partners, LLC and HYPERRAMS, LLC, which is proposed to serve as the stalking horse bid against which all other bids will be measured. Pursuant to that agency agreement, the Hudson/HYPERRAMS joint venture would serve as the agent for Robb & Stucky for the liquidation of substantially all of the company's assets. Pursuant to the agency agreement, Robb & Stucky would receive approximately 75.2% of the aggregate "Cost Value" of the merchandise liquidated by the joint venture up to a guaranteed recovery amount, and approximately 60% of any proceeds in excess of that guaranteed amount. If the joint venture is not the successful bidder at an auction (if competing bids are received), it would be entitled to receive a combined break-up fee and expense reimbursement of $475,000. The date proposed for such an auction is March 7, 2011.

Robb & Stucky is represented in the bankruptcy cases by Berger Singerman, P.A. as counsel, FTI Consulting, Inc. and Kevin Regan as Chief Restructuring Officer, AlixPartners, LLP as communications consultants, and Bayshore Partners, LLC as investment bankers.

Key court filings to date include (links to access filings contained in attached document):

* Voluntary Petition under Chapter 11

* List of 20 Largest Unsecured Creditors

* Declaration of Kevin Regan in Support of First Day Pleadings

* Application to Pay Prepetition Claims of Critical Vendors

* Application to Pay Honor or Pay Certain Prepetition Obligations to the Debtor's Customers in the Ordinary Course of Business

* Emergency Motion for Approval of Procedures in Connection With the Sale of All or Substantially All of the Debtor's Assets, Authorization to Enter Into Stalking Horse Agreement in Connection Therewith, Approval of the Payment of Stalking Horse Protections, and the Setting of Related Auction and Hearing Dates

* Emergency Motion (I) for Authorization to Obtain Postpetition Secured Financing Pursuant to 11 U.S.C. §§ 105, 361, 362, and 364; (II) for Order Granting Adequate Protection to Prepetition Secured Parties Pursuant to 11 U.S.C. §§ 361, 362, 362 and 364, and (III) to Schedule a Final Hearing Pursuant to Bankruptcy Rule 4001

* Emergency Motion to Reject Executory Contracts and Unexpired Leases as of the Petition Date

For access to all major pleadings filed in this case, please visit:


LOADING PDF: If there are any problems, click here to download the file.

Written by:

Randall Reese

Restructuring Concepts LLC on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.