Case Study

RoomStore

CLIENT: Heilig-Meyers Liquidation Trustee

Gordian Group advised the Heilig-Meyers liquidation trustee in connection with its majority equity holdings in RoomStore.

Business Profiles

Situation

Heilig-Meyers was a retail furniture store chain that had grown to become the largest furniture retailer in the United States in the 1990’s. A series of expansion acquisitions left the Company overlevered, and the Company eventually filed for bankruptcy in 2000. As part of Heilig-Meyers’ bankruptcy case, RoomStore was carved off as a stand-alone company, with a promise that it would issue a 30 percent ownership interest to its creditors and a 70 percent stake to Heilig-Meyers’ unsecured creditors.

Engagement

Gordian Group advised Heilig-Meyers’ liquidation trustee in connection with its majority equity holdings in this furniture retailer.

Outcome

Gordian Group advised the liquidation trustee on monetizing its equity stake in RoomStore. Gordian Group successfully marketed the Company and received several bids from both strategic and financial parties; ultimately, the liquidation trustee distributed the Room Store stock it held to its stakeholders.