Home Interiors & Gifts files Chapter 11 bankruptcy

By Caroline Salls

Pittsburgh, April 29 - Home Interiors & Gifts, Inc. filed Chapter 11 bankruptcy Tuesday in the U.S. Bankruptcy Court for the Northern District of Texas to reorganize its business operations and restructure its debt, according to a company news release.

"Home Interiors, as well as other representative/direct sales companies, has experienced declining sales volume in the United States in the past decade, offset somewhat by increased sales in Mexico and Puerto Rico," chief restructuring officer Dick Lindenmuth said in the news release.

"Initiatives the company launched to spur sales and reduce costs in recent years were not sufficient to maintain financial health in the current operating environment.

"We expect to emerge from Chapter 11 with an improved balance sheet and streamlined business operations that will provide a foundation for future success."

The company said it will continue its normal business operations.

Home Interiors listed $100 million to $500 million in both assets and debt.

The company's largest unsecured creditors include:

• UPS - SCS, Alpharetta, Ga., with a $2.04 million trade debt claim;

• Federal Express Corp., Rockwell, Texas, with a $1.43 million trade debt claim;

• Gaylord Opryland, Nashville, Tenn., with a $1.43 million trade debt claim;

• Meredith Corp., Dallas, with a $1.27 million trade debt/royalty agreement claim; and

• Asia Gift Specialty Ltd., with a $1.03 million trade debt claim.

The company said its foreign affiliates Home Interiors de Mexico, S de RL de CV, Home Interiors Services de Mexico, SA de CV and Home Interiors and Gifts of Canada, Inc. and its wholly owned subsidiary Domistyle, Inc., are not a part of the filing.

Home Interiors & Gifts is a Dallas-based integrated manufacturer and distributor of home decorative accessories. Its Chapter 11 case number is 08-31961.

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