Released: September 21, 2008

Couch on order, company bankrupt: Now what?

Source: Elizabeth Razzi, Washington Post (Free Registration)

Maybe they’ll become collector’s items, my coffee table from Bombay Co., some old bedside tables from Scan. Both are retailers that have shuttered their stores after filing for bankruptcy protection. It’s the trickle-down result of a poor housing market.

It’s not just big home-building companies that are struggling. Bankruptcy filings are increasing among small contractors, designers and furniture stores—the folks you deal with when you need an upgraded bathroom or new sofa.

If you paid a deposit to a company that heads to bankruptcy court (especially Chapter 7, when the company goes out of business and the court distributes whatever assets it has left) you’ll find yourself one of many “unsecured creditors” vying for scraps.

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