Domain Home Announces Chapter 11 Filing

27-Store Chain to Continue Serving Customers While Developing
Reorganization Plan
NORWOOD, Mass.--(Business Wire)--Domain, Inc., d/b/a Domain Home Furnishings ("Domain") announced
today that the Company has filed a voluntary petition to reorganize
under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy
Court, District of Delaware. Under Chapter 11, Domain will continue to
operate its businesses under Court protection from creditors, while
seeking to develop and implement a reorganization plan.

With the financial pressures associated with operating the
27-store chain, particularly in today's depressed economic and real
estate environment, Domain has experienced reduced sales and loss of
working capital. After careful consideration and a thorough review of
its options, the Company concluded that the best way for Domain to
address these challenges, while continuing to serve its customers and
operate the business, is to seek the protection of the Bankruptcy
Court via a Chapter 11 filing.

Domain's 27 stores in Massachusetts, Connecticut, New Jersey, New
York, Pennsylvania, Maryland and Virginia, as well as its Distribution
Centers, will remain open during the Chapter 11 proceedings. The
Company is also actively seeking ways to fulfill outstanding customer
orders during this process.

Domain's board also voted to refocus its management team during
this reorganization phase to enable its leadership to focus on the
current tasks on hand. Judy George, founder and Chief Executive
Officer of Domain, will drive an aggressive fundraising campaign to
seek investors for the Company. Tony Castelli, Domain's VP--Stores &
Operations, will assume day-to-day operations responsibilities during
the reorganization process.

According to Judy George, a 30-year home furnishings innovator,
"Domain has been my lifelong passion and I will fight for our future.
I'm taking every possible measure to protect my customers and
employees, who are like family to me. My main role throughout our
reorganization will be to raise the funds needed to allow Domain to
thrive." Ms. George added, "Our team of great Associates is deeply
committed to serving our customers and working constructively with our
vendors to get our operations back on track. We hope our Company will
be here for many years to come, providing the high style, quality home
furnishings our customers have come to expect from Domain."

Chapter 11 filings allow companies to reorganize in response to
situations such as the current economic pressures and are a proven
process that many 'brand name' companies have used to gain breathing
room from some financial pressures while working to strengthen and
revitalize their businesses.

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