LEXINGTON, NC — Filings continued today in the Chapter 11 bankruptcy protection case of residential and hospitality furniture manufacturer Linwood Furniture LLC.
Linwood, which opened in 2006 and is a producer of the Bob Timberlake line as well as its own lines of residential furniture, filed for voluntary Chapter 11 protection March 5 in U.S. Bankruptcy Court Middle District of North Carolina. The Lexington, NC-based company listed $3.65 million in total assets, including $2.52 million in inventory, and $6.89 million in debt. Among its top creditors are: Kepley-Frank Hardwood Co., $774,718; Columbia Panel, $524,570; Chesterfield Wood Products, $358,818; and Woodcraft Inc., $201,582.
An order filed on March 8 designates Linwood CEO Michael Mebane to act on behalf of the corporation. Motions were granted for Linwood to continue paying its employees and for continuation of utility service. According to published statements, Mebane said the bankruptcy filing should not affect its 80 full-time employees or the production of its residential furniture or hospitality lines.
Just last fall, Linwood Furniture entered into a strategic manufacturing partnership with Kimball Hospitality for the production of casegoods. Kimball is listed on court documents as holding a secured claim of unknown amount for raw materials, work in process and finished goods.
The court filing for Linwood Furniture LLC lists Linwood Capital LLC owning 60 percent of the company and Linwood Inc. with 40 percent. The next hearing on motions is scheduled for March 20.
Formed as a joint venture between Bob Timberlake Inc., Kepley-Frank Hardwood and a group of investors, Linwood Furniture became renown for its promotion of Made in the USA furniture. The vertically integrated company also uses locally sourced hardwoods to manufacture its solid wood bedroom and dining room suites.
Related article: Linwood’s Furniture Niche: Made in America (2008)
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