Heilig-Meyers

Client

Heilig-Meyers Company was a national furniture retailer operating 872 stores which generated $2.0 billion in revenues prior to filing bankruptcy in 2001.

Challenge

As a result of the bankruptcy, all 814 Heilig-Meyers Furniture stores were closed, and only 54 of the RoomStore chain continued operating. A Bridge Managing Director was retained as Liquidating Trustee to complete the claim reconciliation process, recover receivables and cash collateral, monetize its 70% holding of RoomStore common stock, litigate tax disputes and make distributions to Priority and Unsecured creditors.

Solution

Bridge took over the claims agent function and resolved outstanding claims. The Trust has undertaken a sales process to monetize the RoomStore common stock. The Trust continues to litigate with the IRS over the tax refund dispute. The Trust also completed all tax filings required of the Debtor.

Results

The Trust resolved the claims against the cash collateral contributing $14 million to the assets to be distributed and has collected $3 million in other receivables. Distributions were completed to all priority claimants. The unsecured claims have been settled. The RoomStore common stock monetization process is proceeding.