ABC Carpet & Home is feeling the impact of the pandemic.
The 125-year-old luxury home furnishings and accessories store retained investment firm B. Riley Financial and restructuring practice Greenberg Traurig as it explores “whether bankruptcy makes sense,” reported the New York Post. The report said that Paulette Cole, the fourth-generation owner of the company, has poured millions of dollars into the business to keep it up and running during the pandemic.
ABC Carpet is also locked in a dispute with its landlord over $1 million in rent that threatens the lease of its flagship in Manhattan’s Flatiron District, reported The Post. The flagship is in a building owned by Columbia Property Trust.
The pandemic took a heavy toll on the retailer’s business as wealthy residents fled the city and tourists stayed away. Things were made worse by the fact that ABC Carpet has an out-of-date website with limited offerings. The company is almost exclusively reliant on in-store sales