Utah Utes Dorm & Home DecorGet Utes furniture including tables, bean bags and desk chairs to complete your living area. Get all the Utes dorm room essentials like Utah Lamps, Rugs, Frames, Clocks and Desk Accessories. Pick up Utes Bedding from our stock of Dorm Bed Sets and Sheets in twin, queen and king size. S.L.-based firm has $500,000 in assets and $3.2 million in debt Salt Lake-based LoveSac Corp. on Monday filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the District of Delaware. Shawn Nelson, who founded the company that makes "oversize" stuffed furniture, similar to bean bags, with some friends in 1998 from the basement of his mother's Millcreek home, touted his product line as "hard-core leisure." "We're a funky lifestyle brand," Nelson told the Deseret Morning News in October 2005. "We are really serious about how people waste their time." Now the company must get serious about its finances. According to court documents, LoveSac's 30 largest unsecured claims total more than $3.2 million, including a number of Utah firms owed tens of thousands of dollars.
Estimated assets of the company are less than $500,000. Wayne Schmirler, president of Sino China Trading Limited, a Hong Kong registered company and one of LoveSac's unsecured creditors, said his company will end up losing roughly $1.2 million from LoveSac's bankruptcy filing. "Who the hell is protecting us?" "We didn't even get the courtesy of a phone call. We just got nailed." Schmirler said his company acted as an agent on behalf of LoveSac, placing orders with five Chinese factories, which made the chairs and accessories. In many cases, Schmirler said, vendors bent over backward to try and help LoveSac. Now Schmirler said his family-operated business of eight years may be forced into bankruptcy itself. "We're out $1.2 million of product that is sitting in his stores," Schmirler said. "He buys it and marks it up 10 times and then sells it, and he's being protected from us? He really has jerked a lot of money out of someplace." Schmirler said LoveSac has always had trouble paying him.
As recently as December, Schmirler said Nelson came to him and said he could not meet a payment, asking for an extension into 2006. Calls to Nelson and Doyle Judd, LoveSac's chief financial officer, seeking comment on the bankruptcy filing were not returned Thursday. Darrell Jakins, co-owner of Orem-based Ensign Group International, which is owed $126,000, said LoveSac's filing won't put his company out of business, but it will hurt. "I don't know that I am going to get all of that back, but I expect I will get something back," Jakins said. "If they continue to do business, then we would certainly like to do business with them. We think that they've got an exciting brand." A year ago Nelson came away with $1 million from billionaire Richard Branson, the owner of Virgin Atlantic Airways, after winning Fox TV's reality show "The Rebel Billionaire." Nelson said he handed his winnings over to his chief financial officer to further grow the company. In October, Nelson said LoveSac's 2005 sales would top $30 million.
LoveSac operates 74 stores, including six locations in Utah, and has roughly 700 employees. Less than four months ago, LoveSac was named the winner of the Utah 100 awards, a ranking of the state's fastest revenue growth companies. Devin Thorpe, founder of Thorpe Capital, a Salt Lake-based investment bank, said fast-growing companies always need more capital. "We know that LoveSac opened dozens of stores in the last year," Thorpe said. "As Utah's fastest-growing company for the years 2000 through 2004 they raised a lot of money; much of that, however, was structured as debt." Also this week, a bankruptcy judge ordered a consolidation into one case of three of LoveSac Corp.'s affiliates, which also filed for bankruptcy protection. Those affiliates include LoveSac of Nevada LLC, ChillSack LLC and LoveSac Franchising Inc. According to the American Bankruptcy Institute, Chapter 11 is available for both business and consumer debtors. The provision allows a debtor to remain in possession of a business and in control of operations while a court-approved reorganization plan is finalized.
Read More Reviews > Shop Furniture, Mattresses, Appliances, and Electronics in the St. George, Cedar City, Hurricane, Utah, Mesquite, Nevada area.Are you looking for the best upholstery cleaning service in Utah? You’ve found it with Utah Carpet Cleaners. We offer many methods to provide the most professional and delicate upholstery cleaning services. We specialize in upholstery cleaning for furniture, cars, and boats. Depending on the stains, colors, textures, and size, our upholstery technician will determine the most effective steam pressures and detergents to make your furniture look new. We can clean almost anything, and we’ll make sure the job is done right. We can clean almost any fabric, including delicate and hard to clean fabrics. First, we inspect the furniture assessing any stains or spots, so we can notify you what to expect from the beginning. Then, we will pre-condition the fabric allowing the cleaning agents to better attack the dirt and stains.
We will follow this with a textile rinse and extraction to thoroughly remove all moisture and soil. Finally, we us high-powered air movers to intensify and accelerate drying time. Like all of our other services, we value safety. That is why we only use non-toxic chemicals that are safe for you, for your children, and your pets. When it comes to the environment, we would never use anything that would harm the beautiful world we live in. Our professionals have developed the most efficient and cost effective methods to upholstery cleaning. We only use the most advanced and safe upholstery cleaning machines. You can count on us to get the job done right, the first time. It is no easy task to keep furniture clean, and it’s even harder to clean them when they get dirty. You want all your furniture (couches, chairs, futons, bean bags, etc.) to be clean and smell good. There is nothing more welcoming and inviting to guests than fresh and clean furniture. Over time, you become used to the condition your furniture is in, without even realizing that it has become dirty.