Hoboken Flooring goes bankrupt
Hoboken Wood Flooring, a distributor of wood, tile, laminate and other hard surface flooring from Maine to Florida, has filed for bankruptcy in a U.S. District Court in Delaware. The Wayne, N.J.-based firm listed assets and debts of more than $100 million each and estimated its number of creditors at 1,000 to 5,000.
Founded in 1930, the privately held company is now under the management of private equity group Code Hennessy & Simmons. Through a series of acquisitions, Hoboken Flooring expanded its territory along the Eastern Seaboard, with showrooms in Boston and Manhattan and distribution centers in Westbrook, Maine and Rochester, N.Y.
In court filings, the company said it had examined its options and determined that a Chapter 11 reorganization was not feasible because of its inability to generate cash or obtain debtor-in-possession financing. Meeting payroll for existing employees was also a problem, the court filing said.
Ahearing for creditors has been scheduled for Dec. 11 in the U.S. Bankruptcy Court in Wilmington, Del.