LEXINGTON, NC - Linwood Furniture LLC, recently regarded as a Made-in-America furniture success story, has moved from Chapter 11 to Chapter 7 setting the stage for its machinery and other assets to be sold to reimburse some of the more than $6 million owed to creditors.
In July, Linwood Furniture managers sought court permission to sell its assets, including the possibility of finding a foreign furniture company interested in buying the plant and ramping up operations.
In converting Linwood Furniture from Chapter 11 to Chapter 7 last week, bankruptcy judge Catharine Aron assessed that the company was not in position to turn its fortunes around. Aron also appointed a trustee to oversee liquidation of Linwood Furniture's assets.
Linwood Furniture was founded in 2006 as a joint venture between Bob Timberlake Inc., Kepley-Frank Hardwood and a group of investors. Last fall, Kimball Hospitality entered into an exclusive partnership for Linwood to manufacturer its wood casegoods.
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