{"id":318846,"date":"2021-08-09T00:18:15","date_gmt":"2021-08-08T21:18:15","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/abc-carpet-home-is-scrambling-to-stave-off-bankruptcy-sources\/"},"modified":"2021-08-09T00:18:15","modified_gmt":"2021-08-08T21:18:15","slug":"abc-carpet-home-is-scrambling-to-stave-off-bankruptcy-sources","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/abc-carpet-home-is-scrambling-to-stave-off-bankruptcy-sources\/","title":{"rendered":"#ABC Carpet & Home is scrambling to stave off bankruptcy: sources"},"content":{"rendered":"

“#ABC Carpet & Home is scrambling to stave off bankruptcy: sources<\/strong>”<\/p>\n

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Swanky furniture retailer ABC Carpet & Home is scrambling to stave off bankruptcy in the wake of the pandemic, The Post has learned. <\/p>\n

The 125-year-old outlet \u2014 known for its luxurious stash of home goods, from $375 velvet throw pillows to $12,000 silk-and-wool rugs \u2014 recently retained an investment bank and a top restructuring lawyer to help it stay afloat, according to sources. <\/p>\n

The company is \u201cexploring whether bankruptcy makes sense,\u201d said a source with knowledge of the situation, adding that fourth-generation owner Paulette Cole has personally poured millions of dollars into the business to keep it going during the pandemic. <\/p>\n

Despite the cash infusions, the store\u2019s inventory has been slashed, the source said. ABC is likewise locked in a dispute with its landlord over $1 million in rent that threatens the lease at its flagship store in Manhattan\u2019s Flatiron District, the company confirmed to The Post.<\/p>\n

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Shoppers expect lush displays at ABC Home & Carpet, but the retailer has had to slash inventory.<\/figcaption>
Paul Bruinooge\/Patrick McMullan<\/span><\/figcaption><\/figure>\n<\/div>\n

The home furnishings destination \u2014 dubbed New York\u2019s \u201cmost magical home store\u201d by House Beautiful magazine in 2019<\/a> \u2014 retained investment firm B. Riley Financial earlier this year to help it explore strategic options and secure financing, sources said. <\/p>\n

B. Riley has helped ABC find some cash, according to the source with knowledge of the situation. But app<\/a>arently it\u2019s not enough, as the retailer more recently tapped Oscar Pinkas, head of Greenberg Traurig\u2019s restructuring practice, sources said. <\/p>\n

If ABC can\u2019t secure more funds and renegotiate its debts with vendors and landlords, it may be forced to file for Chapter 11 \u2014 and possibly liquidate its business, the source added. <\/p>\n

An ABC spokesperson confirmed the retailer has retained B. Riley and Greenberg Traurig \u201cto handle strategic legal and financial matters concerning the past year\u2019s many challenges.\u201d The spokesperson didn\u2019t address whether it\u2019s exploring bankruptcy.<\/p>\n

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Paulette Cole has reached into her own pocket to stabilize ABC Home & Carpet\u2019s future.<\/figcaption>
Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n

Known for its brightly colored furnishings and exotic collection of rugs from India, Morocco and China, ABC was hit hard by the pandemic, which forced it to shutter its flagship store and an outlet store in Brooklyn in March 2020. <\/p>\n

ABC reopened its four-floor flagship store at 888 E. 19th St. last year \u2014 but to a city devoid of many of the well-heeled customers and tourists who used to frequent its halls, which have been likened to a luxury bazaar thanks to its clutter of items stacked high and even dangling from the ceiling.\u00a0<\/p>\n

Making matters worse, ABC\u2019s business relies on in-person shopping. Despite its lofty prices, the company\u2019s Web site is primitive compared with cheaper rivals, with limited capability to zoom in on fabrics, for example.\u00a0<\/p>\n

\u201cThey don\u2019t have the kind of merchandise that lends itself to online sales,\u201d said a source close to the company. \u201cWho wants to buy a $10,000 rug without seeing it first?\u201d<\/p>\n

In an October interview with the New York Times, owner Cole and ABC Home & Carpet CEO Aaron Rose admitted the retailer was behind in \u201cdigital marketing\u201d and would be \u201cgearing up\u201d in that area.<\/p>\n

Cole, the great-granddaughter of Lower East Side carpet peddler Sam Weinrib, has been shrinking the retailer for several years. In 2018, she closed its three-decade old carpet store across the street from its flagship. And in 2016, Cole shuttered ABC\u2019s vast Bronx Warehouse outlet. <\/p>\n

In 2018, Cole told The Post, \u201cWe\u2019ve been consciously right-sizing the business and being responsive to New York real estate and the online phenomenon. We invested in our online strategy, but we are looking to invest further in that.\u201d<\/p>\n

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The retailer lends itself to in-person browsing and buying rather than online shopping.<\/figcaption>
Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n

When Cole closed the carpet store on Broadway, she also inked a deal to sell four of ABC\u2019s six floors at 888 to a real estate firm for $133 million. At the same time, she established an LLC called AMMA421, which became \u201ca sub-landlord for a portion of the store,\u201d according to the ABC spokesperson.<\/p>\n

In July, AMMA421 filed for bankruptcy protection, listing Cole as its principal, court filings show. Now AMMA421 and the building\u2019s owner, Columbia Property Trust, are locked in a dispute that could result in ABC losing its flagship lease. <\/p>\n

\u201cWe are closely monitoring the dispute between AMMA421 and its landlord as the outcome could impact our lease,\u201d the ABC spokesperson told The Post in a statement. <\/p>\n

AMMA421 has not been able to pay what it owes to the landlord, according to a Wednesday court filing. The landlord of the flagship building is ramping up pressure on the retailer as well, according to court filings.<\/p>\n

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The owners desperately want to avoid closing the beautiful Manhattan Flatiron District store \u2014 after the pandemic already forced the shuttering of an outlet in Brooklyn.<\/figcaption>
Getty Images<\/span><\/figcaption><\/figure>\n

\u201cThe landlord is ready to evict ABC,\u201d maybe because \u201cit wants to convert the whole building to condos,\u201d said distressed-debt expert Adam Stein-Sapir. <\/p>\n

ABC may have retained B. Riley, Stein-Sapir added, to find a buyer for the business or solicit new investors. The investment bank could also take a stake in the storied retailer. <\/p>\n

If ABC is unable to secure more financing, it also has Greenberg Traurig on hand, Stein-Sapir said, \u201cwhich has a well-known bankruptcy practice.\u201d\n <\/p><\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#ABC Carpet & Home is scrambling to stave off bankruptcy: sources” Swanky furniture retailer ABC Carpet & Home is scrambling to stave off bankruptcy in the wake of the pandemic, The Post has learned. The 125-year-old outlet \u2014 known for its luxurious stash of home goods, from $375 velvet throw pillows to $12,000 silk-and-wool rugs…<\/p>\n","protected":false},"author":1,"featured_media":318847,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/08\/sized-abc.jpg?quality=90&strip=all&w=594","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[113714,4978,75327,70470],"class_list":["post-318846","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-8-8-21","tag-bankruptcy","tag-luxury","tag-retail"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/318846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=318846"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/318846\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/318847"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=318846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=318846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=318846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}