Smith’s Officially Gives Up Furniture Chain Converts Bankruptcy To Liquidation

A trustee will be appointed to liquidate Smith’s Home Furnishings after the retail chain notified U.S. Bankruptcy Court Tuesday it was abandoning attempts at financial reorganization.

Judge Elizabeth Perris approved Smith’s request for a Chapter 7 bankruptcy filing, leading to final closure of the furniture, appliance and home electronics business.

The action also left 400 employees without jobs.

Perris ordered the chain closed Thursday after it failed to pay utility bills and missed revenue projections.

Smith’s closed for about a week in late August after filing for protection under Chapter 11 of the U.S. Bankruptcy Code, but won the court’s permission to reopen some stores in time for the traditionally busy Labor Day weekend.

The two Spokane stores and others in Washington closed in August. Some of the goods from those stores already has been sold, with liquidation sales scheduled for the rest.

“We fought as hard as we could fight,” said company Chairman Glen Grodem. “It’s time to let it go.”