Tukwila, Washington (PRWEB) December 4, 2008
iFLOOR, a multi-channel flooring retailer, today announced it has filed a petition for protection under Chapter 11 of the United States Bankruptcy Code. The bankruptcy was filed in Seattle. Under Chapter 11, the company will undertake the orderly administration of its assets and creditor claims.
From its Internet beginnings in the late 90's, iFLOOR grew to a nearly $60 million multi-channel retailer. In recent months, the company has been adversely affected by a rapidly deteriorating macroeconomic environment. Housing starts reached a 17-year low in September and the Harvard Joint Center for Housing Studies expects remodeling expenditures to further deteriorate after dropping almost 13 percent year-over-year in the second quarter.
In recent months, the company made an intensive effort to rationalize its supply base, reduce operating expenses and explore new funding sources. Despite its best efforts, the company could not overcome the unprecedented current economic environment and the fact that consumers are spending less money remodeling their homes. After reviewing all options, the Board of Directors determined that it would be in the best interest of iFLOOR's stakeholders to file for Chapter 11.
Anyone with questions regarding the bankruptcy process or claims may direct them to iFloor in care of its attorneys, Mark D. Northrup and Graham & Dunn PC at (206) 340-9628.