Gracious Home has a new lease on life. <\/p>\n
The twice-bankrupt home goods retailer has emerged from its latest trip through Chapter 11 with plans to become the Warby Parker of bed linens and lighting that is, to use its brick and mortar locations solely for showrooming its products. <\/p>\n
The once hot chain financed its exit from Chapter 11 with $4 million from Tom Sullivan, the founder of Lumber Liquidators, who bought the upscale home goods store out of bankruptcy. <\/p>\n
A Manhattan Bankruptcy Court judge approved the sale late Thursday. <\/p>\n
Sullivan, the only bidder for the chain, paid off a $3 million loan from JMB Capital Partners that allowed Gracious Home to acquire new inventory while it was reorganizing. <\/p>\n
Tom is famous for buying distressed companies, said Gracious Home Chief Executive Robert Morrison, a former senior vice president of Lumber Liquidators, who helped Sullivan take his old company public and reached out to him earlier this year. <\/p>\n
The timing wasnt right as he was exiting Lumber Liquidators at the time, but we began talking again in May, said Morrison, who will continue to head up Gracious Home. <\/p>\n
The chain closed three of its four stores last year, retaining just its Upper East Side location. <\/p>\n
With fresh capital and a new online focus, Morrison hopes to open about six stores in major cities like Miami, San Francisco and Washington, DC, he said, adding that the stores would be similar to the Warby Parker showroom model. <\/p>\n
The important thing is to remain nimble and to have small stores that dont need a lot of inventory, Morrison said. <\/p>\n
The 54-year-old chain, which had sold everything from silk pillows and chandeliers to furniture polish and Lysol, is now focusing on lighting and bed and bath linens. A set of sheets costs about $500 while floor lamps and sconces run between $400 and $1,400 a pop. <\/p>\n
Sullivan stepped away from Lumber Liquidators this year after serving as interim CEO during a much publicized crisis over reports that its laminate flooring had elevated levels of formaldehyde, which made some consumers ill and resulted in numerous lawsuits. <\/p>\n
A serial entrepreneur, Sullivan also owns Cabinets To Go, a 54-store chain he founded in 2008. <\/p>\n
Tom will be very helpful, Morrison said. Hes a real American success story. <\/p>\n
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New owner takes Gracious Home out of bankruptcy - New York Post<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Gracious Home has a new lease on life. The twice-bankrupt home goods retailer has emerged from its latest trip through Chapter 11 with plans to become the Warby Parker of bed linens and lighting that is, to use its brick and mortar locations solely for showrooming its products. The once hot chain financed its exit from Chapter 11 with $4 million from Tom Sullivan, the founder of Lumber Liquidators, who bought the upscale home goods store out of bankruptcy Continue reading