Gracious Home Files For Bankruptcy

Gracious Home, which operates three Manhattan stores, filed for Chapter 11 bankruptcy protection on August 13. The company will use the bankruptcy process to restructure its store lease obligations, and has acquired new capital from Meridian Acquisition Ventures LLC, according to reports.
In a filing with the U.S. bankruptcy court in Manhattan, Jordan Smilowitz, president and CEO of Gracious Home, said in a statement that the company has had “substantial” losses for several years, with revenue declining to an estimated $58 million this year from $60 million in 2009 and $70.4 million in 2008.
Smilowitz also said that Gracious Home doesn’t expect any disruption in day-to-day activities. “We want to assure our customers, our employees, our suppliers and our community that Gracious Home is operating, business as usual,” Smilowitz said.
“We intend to emerge from these proceedings with a significantly improved balance sheet and, consequently, greater operating flexibility,” he added. “I am confident in Gracious Home’s future.” Gracious Home was founded in 1963.