Its Confirmed, Rosas Has Gone Bankrupt and Closed All Stores in 2011
Apparently, the company filed bankruptcy and received permission from the court to run massive sales for up to 4 months before they would have to be shut down completely. Rosas had been a part of New York since 1981, and while there were only about 4 – 5 stores operating, the company felt they needed to file for bankruptcy in 2010 because they were losing more money than they were gaining.
Dean Rallo, President of Rosas commented that even though they were closing the doors to Rosas, all of their customers who had purchased items prior to the filing would receive what they ordered or be given the opportunity to select from the items that were still in stock. Dean stated that it was important not to let their loyal customers suffer because of the closings.
While the judge, Michael Kaplan approved the liquidation sale, he too seemed to be worried about what Rosas was going to do about the more than $400,000 in merchandise that was still owed to their customers. The company even worked closely with its attorneys to ensure that the customers would be put first before any other decisions were made.
The truth is that if the judge had not approved the decision, the company would have had to pay off the customers immediately, and they would have run out of money trying to do so. On top of that, they would not have been able to have their liquidation sale. This would have forced the company to shut the doors immediately without being able to offer some great items for a great price.
When Did Sale Start?
Once the bankruptcy was finalized, Planned Furniture Promotions was chosen to assist Rosas with their liquidation sale. Of course, Tom Liddell, President of Planned Furniture Promotions told reporters that the company was excited to be a part of the changes. It gave them the opportunity to be a part of offering customers some of the best deals on some of the best brand name items including electronics, accessories and furniture.
Some of the Rosas stores were located in Buffalo while one being in Niagara Falls. At the beginning of 2011, it stood that all of the stores were closed for awhile, which gave them time to prepare for the big money saving sale. At the bankruptcy hearing, many of Rosas creditors were not pleased with the outcome because for them it pretty much meant they would get nothing back, or they would have to share what they were owed with the customers.
The funny thing is that during the first and most part of the year, Rosas lost over $1 million in revenue sales. Declined sales had a bit to do with that, but when the economy got bad, they suffered enormously. Rosas soon figured out after hiring an expert to help turn things around that they were in no condition to compete with other retailers. Most of the sales from the liquidation were used to pay off Rosas debts, starting in Niagara Falls.