ABC Carpet & Home Files Chapter 11

888 Capital Partners enters into stalking horse purchase agreement

Day-to-day retail operations for ABC Carpet & Home are expected to continue as usual while the company enters a stalking horse agreement with 888 Capital Partners.

New York – ABC Carpet & Home, the four-story retail showroom based in Manhattan’s Flatiron District since 1897, is selling all of the company’s assets to 888 Capital Partners, a consortium of investors.

To implement the sale, the company filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. 888 Capital Partners has entered into a binding stalking horse purchase agreement and committed to provide debtor-in-possession financing in order to allow ABC Carpet & Home to meet its business obligations during the sale process.

Other interested parties will have an opportunity to submit higher or better offers for the company through a competitive, court-supervised bidding process.

ABC’s day-to-day retail operations are expected to continue as usual as the company seeks court approval to continue paying employee wages and benefits without interruption and to honor customer programs, including deposits, merchandise credits and gift cards.

“We have worked to navigate the challenges of the last year, including fulfillment issues due to COVID-19-related supply chain shortages and production delays, and we are pleased to have now identified a strategic investment partner that is well-positioned to provide ABC Carpet & Home with a pathway to long-term success,” said Aaron Rose, CEO of ABC Carpet and Home.

Paulette Cole, current owner, creative director and great-granddaughter of ABC Carpet and Home’s founder, is credited with turning a neighborhood carpet store into a New York destination.

“On behalf of my father and his, I have cherished this evolving community and platform,” said Cole. “We have aspired and served to allow it to be a conscious catalyst to inspire through beauty, a meaningful bridge towards creating a healthier more awakened culture for our children. I am profoundly grateful for those who walked beside me on this extraordinary journey as co-creators of the original imprint.”

Perry Mandarino of B. Riley Securities is facilitating the sale with Oscar Pinkas and Ari Newman of Greenberg Traurig serving as counsel to ABC Carpet & Home. Fred B. Ringel and Adam Greene of Robinson Brog are serving as counsel to 888 Capital Partners LLC and BRG is serving as financial advisor.

The pandemic forced ABC Carpet & Home to shutter its flagship store and an outlet store in Brooklyn for several weeks starting in March 2020. The store normally draws about a million visitors a year and is a destination location for the city. The array of products available includes not only carpets and rugs, but also furniture, textiles, gifts and accessories, antiques, and bed and bath items.