Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, January 28, 1992 TAG: 9201280041
SECTION: BUSINESS PAGE: A3 EDITION: METRO
SOURCE: SANDRA BROWN KELLY BUSINESS WRITER
DATELINE: LENGTH: Medium
LOCAL SUPPLIERS HOPE FOR BEST
The president of Hooker Furniture Co. says the current business climate for his industry is "damned if you do and damned if you don't."If a company doesn't sell furniture, it can't keep its factories running and its people employed. But if it sells furniture, it just might sell to a retailer who can't pay the bills.
Hooker chose to keep its factories running, Clyde Hooker Jr. said. So, when the giant R.H. Macy & Co. Inc. filed Chapter 11 reorganization bankruptcy Monday, Hooker Furniture of Martinsville and Roanoke was among the creditors.
"We got stuck with about $100,000," Hooker said.
The debt isn't going to hurt Hooker's financial condition, the chief officer said. "But it doesn't help our feelings any."
Hooker in recent weeks cut back on the amount of merchandise it was shipping to Macy stores in anticipation of the filing. He also said Hooker will continue to ship to Macy's.
So will other Western Virginia manufacturers. Singer Furniture Co. of Roanoke was in the process of becoming a supplier to Macy and president Dennis Ammons said he hopes the bankruptcy doesn't jeopardize the deal.
It possibly could make it easier to sell to the company, Ammons said. A Chapter 11 procedure has the effect of rejuvenating a company's credit, partly because it has protection from creditors.
Sam Moore Chairs Inc. in Bedford three weeks ago stopped shipping to Macy's in San Francisco, its only Macy customer. John Boardman, Sam Moore chief officer, said the Chapter 11 filing should allow Macy's to reestablish its credit, which means companies will begin to supply the stores again.
Boardman said Macy's doesn't owe his company anything, though, because Sam Moore uses a factor for its credit. A factor, usually a bank, takes over the risk of a manufacturer's debt for a fee.