Smith’s Seeks Time To Revise Reorganization Plans

Attorneys for Smith’s Home Furnishings asked a U.S. Bankruptcy Court judge Tuesday for more time to revise the company’s plans for reorganization.

Judge Elizabeth Perris scheduled the hearing to continue Thursday morning. Smith’s, an 18-store chain based in Wilsonville, Ore., filed for reorganization last week under Chapter 11 of the bankruptcy laws.

Meanwhile, customers in Oregon, Washington and Idaho were wondering whether their payment plans, undelivered merchandise and service agreements will be affected by the delay. Smith’s owes about $70 million to more than 5,000 creditors.

Smith’s officials announced last week that two Spokane Smith’s were among five stores slated to close permanently after Labor Day. But customers with in-store credits are worried because stores have been locked since Friday, when they closed unexpectedly due to lack of cash. Smith’s officials will not say when or if the stores will reopen.

Among Smith’s creditors is Spokane resident Marilyn Sykes, who bought $2,200 worth of furniture for her new home in Rathdrum. When the furniture arrived last week severely damaged, Sykes returned and got a voucher to pick out $2,200 of new furniture.

Since then, Smith’s has closed and her credit card bill has come due.

“I don’t know why I’m being punished!” an exasperated Sykes said Monday.

“I know I should have gotten a credit card refund, but I just would never have thought that I’d be out this much money because the company goes bankrupt,” said Sykes, who was nearing tears as she talked.

Ruth Timmins is also worried. The Portland resident purchased a $372 range top that was to arrive at a local store from Seattle on Friday.

“I haven’t heard from anyone,” Timmins said, adding that she has no way of knowing how long she might have to wait.

She said she might have to buy a second range top elsewhere to finish her remodeling job.

“People are getting very nervous,” said Jan Margosian, consumer information coordinator for the Oregon Department of Justice. “Especially those who have items on layaway or have paid for items to be delivered.”

Chief Executive Officer Glen Grodem said Monday at an employee meeting that he is anxious to reopen the stores. Smith’s employs about 1,000 people in Oregon, Washington and Idaho.

“The primary reason I want to reopen is the customer base. The second reason are these people,” he said in an interview near a large group of employees who have been out of work since Friday.

GE Capital Corp., Smith’s largest single creditor, reportedly has reconsidered its decision to cut off the furniture and appliance dealer and was negotiating a new financial deal.

“GE came to us an hour ago with a plan that is very competitive,” Grodem said late Monday afternoon.

GE financed 58 percent of Smith’s sales. The lender provided cash up-front to Smith’s on all company credit-card and delayed-interest, delayed-payment programs.

, DataTimes