BOSTON (2/22/12)—Tiger Capital Group, LLC is actively involved in the liquidation of 17 under-performing RoomStore locations in Texas, Alabama, and Florida in a co-venture with three other firms.

Going-out-of-business sales got under way in early January in the selected locations as the Virginia-based RoomStore, Inc. reorganizes under Chapter 11 of the Federal Bankruptcy Code.  The company voluntarily filed for Chapter 11 protection in Richmond, Va. on December 12, 2011 as a continuation of efforts to turn around the business under recently appointed CEO Stephen Giordano. In connection with the plan, the company secured a commitment from its lender, Wells Fargo Bank, for a $14 million Debtor-In-Possession credit facility. In February, the company received court approval to  replace that loan with a $15 million facility from Salus Capital Partners, LLC that will expire in June 2013. The financing will be used by RoomStore for working capital as the company reorganizes under Chapter 11.

At the time of the filing, the company operated 64 stores in Alabama, Florida, Maryland, North Carolina, Pennsylvania, South Carolina, Texas, and Virginia. The company also retains a 65% interest in Mattress Discounters Group, LLC, which operates 79 stores in four states and the District of Columbia.  For the fiscal year ended February 28, 2011, RoomStore reported revenues of $323.4 million and net loss of $12.7 million.

Tiger is co-venturing on the 17 store closings with Hilco Merchant Resources, LLC; Planned Furniture Promotions, Inc.; and SB Capital Group, LLC. The sales--which include exits from the San Antonio, Houston, Austin and El Paso markets in Texas--are expected to run through mid-March.


About Tiger
Tiger Capital Group, LLC and its affiliates provide advisory, restructuring, valuation, disposition and auction services within a broad range of retail, wholesale, and industrial sectors.  With over 40 years of experience and substantial financial backing, Tiger offers a uniquely nimble combination of expertise, innovation and financial resources to drive results. Tiger’s seasoned professionals help clients identify the underlying value of assets, monitor asset risk factors and, when needed, convert assets to capital in a variety of ways quickly and decisively.  Tiger’s collaborative and no-nonsense approach is the foundation for its many long-term ‘partner’ relationships and decades of uninterrupted success.