OFFENBACHERS RECEIVES APPROVAL TO BEGIN GOING OUT OF BUSINESS SALE IN ALL STORES
LANHAM, Maryland – October 26, 2016 – After more than 44 years in business, Offenbachers, a regional retailer of patio furniture, grills, fireplaces, and recreational products, announced the wind-down of the Company with the closing of all eight stores in the chain. Offenbachers filed a voluntary petition under Chapter 11 of the Bankruptcy Code, and on Wednesday, a U.S. Bankruptcy Court judge in Maryland approved an order authorizing the retention of SB Capital Group, LLC, as exclusive agent to conduct a “Going Out of Business Sale” in each Offenbachers’ location. More than $9 million of inventory, plus fixtures and equipment, will be liquidated. The sale will begin Thursday, October 27.
According to the Company’s Chapter 11 filing, “Immediate store closing sales are in the best interest of the bankruptcy estate and the debtor’s creditors.” The retention of SB Capital Group, LLC, a nationally recognized leader in going out of business and distressed sales, to act as exclusive agent to liquidate inventory and debtor-owned furniture, fixtures and equipment at the retailer’s stores, is a key component to a successful liquidation. Offenbachers believes the firm represents the best offer available for a debtor with its seasonal and specialty inventory levels, store locations and existing market conditions.
The “Going Out of Business Sale” will feature discounts from the everyday list price of everything in Offenbachers’ stores. The vast selection of merchandise includes items from many of the industry’s most well respected brands – Lloyd Flanders, Tropitone, Woodard, Kingsley-Bate, Hanamint, O. W. Lee, Mallin, Kozy Heat, Traeger, Big Green Egg, Coyote, Legacy Billiards, plus many more.
The eight Offenbachers’ stores are located in Falls Church, Fairfax, Fredericksburg, Springfield and Sterling, Virginia, as well as Columbia, Hunt Valley, and Rockville, Maryland. The exceptional name recognition in the marketplace, coupled with compelling discounts on everything in the stores, will make the Offenbachers’ “Going Out of Business Sale” a destination for consumers looking for quality product at exceptional value.
Karl Offenbacher started his business as a pool maintenance and lifeguard services company. In 1972, the first Offenbachers’ Pool & Patio store opened in Rockville, not far from the current Rockville store location. The store carried pool chemicals and supplies, as well as small and unique patio furniture items. Eventually, Offenbachers added billiards, fireplaces and grills to its merchandise selection, and expanded into eight locations in Maryland and Virginia. Today, Offenbachers offers finely crafted furniture for indoor and outdoor entertaining, as well as umbrellas, accessories, bars, grills, fireplaces, and billiard & recreation products.
Offenbachers faced stiff competition in the highly competitive specialty retail sector competing against major national chains such as Home Depot Corp. and Lowe’s Companies Inc. In 2015, Offenbachers had roughly $13.8 million in retail sales, and 65 full and part time employees.
While Offenbachers took steps to improve profitability, sales fell below reasonable expectations. As a result, Offenbachers began exploring alternatives, including seeking additional working capital and eventually attempting to find a strategic buyer for a sale as a going concern. Those efforts proved unsuccessful.
Facing mounting debt and a severe liquidity crisis, Offenbachers’ management determined that the only viable means to maximize a return to its creditors was to engage in an orderly wind down of its business through the liquidation of its assets in a store closing scenario.
In addition to the merchandise liquidation, the fixtures and equipment from all eight stores, and assets from the Company’s 120,000-square-foot headquarters and distribution center in Lanham, Maryland, will also be sold.