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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe Indianapolis-based parent of Today’s Bedroom One, The Mattress Gallery and Today’s Kids has been placed in receivership by a Marion County Superior Court judge after failing to meet financial obligations to primary creditor Huntington National Bank.
The company, TBO LLC, was founded in 1978 and operates 16 retail locations in central Indiana. The stores have been closed since Tuesday, when the court appointed a receiver to sort out TBO’s finances, close unprofitable locations, and recover money owed to Huntington and other creditors, if possible.
According to court documents, TBO owes Huntington $2.3 million on a line of credit the company stopped making payments on in early February. That prompted Huntington to file a complaint March 13, alleging breach of contract and requesting the properties be placed in foreclosure and the appointment of a receiver.
Locally based Gallivan Auctioneers & Appraisers is overseeing the liquidation.
Christopher Carbone, a managing partner of Gallivan, said this morning that the eight Mattress Gallery stores in the metropolitan area are unlikely to reopen. But he said Gallivan is working with the landlords of the eight Today’s Bedroom One locations to reopen the stores and sell inventory to help Huntington recover some of the money it’s owed.
“We are in the process of getting our hands around the business before we begin that process,” Carbone said.
Like many sectors hit hard by the unforgiving economy, the bedroom accessories industry is struggling to stay afloat, said Karin Mahoney, spokeswoman for the Virginia-based International Sleep Products Association.
“In this economy, we’re finding consumers are delaying big purchase items or non-necessity items like mattresses,” she said.
ISPA expects a 7-percent decline in mattress sales this year, compared with an 11-percent drop in 2008.
Letters have been posted on Web sites of both Mattress Gallery and Today’s Bedroom One alerting consumers of their financial troubles. Gallivan said it will make every effort to complete orders already made. Customers can cancel their orders but risk having any deposits forfeited, the company said.
All deposit customers of Today’s Bedroom One, Today’s Kids, and The Mattress Gallery will be contacted this week, the receiver said.
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