“After 73 years in business, Texas-based furniture chain Lack’s will file for Chapter 11 bankruptcy protection and close its 36 stores.
In a news release, the company said the action was necessary because lenders are no longer willing to provide Lack’s funding to finance customers’ purchases. It said lenders have demanded that Lack’s repay its outstanding loans.
Lack’s had about $200 million in annual sales and about 1,200 employees before 2008, according to the news release. Sales dropped 20 percent during the recession, and the company had to lay off 300 employees.
Lack’s, which is headquartered in Victoria, said it would conduct closing sales at all its stores over the next 45 to 70 days.”-AAS