Wickes Furniture
| Company type | Private |
|---|---|
| Industry | Retail (furniture) |
| Founded | 1971 |
| Fate | Filed for bankruptcy and liquidated in 2008 |
| Headquarters | Wheeling, Illinois , United States |
Area served | California, Illinois, Indiana, Michigan, Minnesota, Nevada, Texas, Oregon |
Key people | John Disa (President and CEO from 2004) |
| Products | Furniture |
| Owner | Sun Capital Partners (at time of closure) |
Number of employees | 1700+ |
Wickes Furniture was a privately owned furniture retail chain headquartered in Wheeling, Illinois. Established in 1971 with its initial showroom located in Fridley, Minnesota, the company eventually expanded to operate 43 stores across states including California, Illinois, Indiana, Michigan, Minnesota, Nevada, Texas, and Oregon.
Despite broadening its market presence, Wickes Furniture filed for bankruptcy in 2008 and subsequently underwent liquidation after failing to secure a buyer or investor. At the time of its closure, ownership was held by Sun Capital Partners.
History
Founded in 1971, Wickes Furniture grew to encompass 43 showrooms and maintained five distribution centers. Employing over 1,700 individuals, it ranked among the Top 25 Furniture Retailers nationwide. By the early 1980s, it had become the largest furniture retailer within the United States. However, following the bankruptcy of its parent company, Wickes Companies, it shuttered nine of its then 24 stores in 1982.
In 1988, after Wickes Companies was acquired by two investment groups, Wickes Furniture was divested through a management buyout led by company president John A. Klein alongside private equity firm Kelso & Co. in April 1989.
In 1998, Taiwanese firm Master Home Furniture acquired Wickes Furniture; however, after Master Home Furniture defaulted on bank loans, Wickes entered receivership in 2000. Prior to this, Master Home sold a portion of its stake in Wickes Furniture in February 1999.
In August 2002, ownership transferred to a partnership between Sun Capital Partners and an affiliate of furniture retailer Rooms To Go. By March 2004, Sun Capital acquired Rooms To Go's share entirely. That same month, John Disa was appointed president and CEO of Wickes Furniture by Sun Capital Partners. Before joining Wickes, Disa had extensive experience predominantly within the athletic footwear sector.
Bankruptcy
In May 2007, Wickes Furniture declared its intention to shut down five locations in Minnesota along with a distribution center in Brooklyn Center, as part of a strategic move to concentrate efforts on expanding into new markets such as California, Chicago, Portland, and Las Vegas.
However, by the middle to the latter part of 2007, the furniture sector faced significant challenges due to soaring fuel prices and the repercussions of the subprime mortgage crisis. On February 3, 2008, Wickes Furniture sought protection under Chapter 11 bankruptcy. At that point, the company operated thirty-eight stores and reported liabilities exceeding $50 million while holding assets valued below $50,000.
Liquidation
On February 14, 2008, Richard Clausing, the chief financial officer of Wickes Furniture, announced that the company required a buyer or investor by February 25, 2008, to recapitalize and avoid closure, as mandated by court and creditor deadlines. Unfortunately, no suitable party emerged. Consequently, with authorization from the bankruptcy court, Wickes initiated liquidation sales in March 2008 and proceeded to close all remaining outlets.
Wickes Furniture was revived on January 1, 2012, under a new brand name: Wyckes Furniture.