Furniture retailer Wickes files for bankruptcy

ATLANTA, Feb 4 (Reuters) - Wickes Furniture, a retailer owned by private equity firm Sun Capital Partners, has filed for Chapter 11 bankruptcy, citing tough times in wake of the slumping U.S. housing market.

In the filing, made in federal court in Delaware on Feb. 3, the Wheeling, Illinois-based company lists debts of more than $50 million and assets of no more than $50,000.

According to a statement from Richard Clausing, chief financial officer of Wickes Furniture and its parent, Wickes Holdings, the company is seeking a transaction involving a sale of or investment in its business. If an investor is not located, it would liquidate its assets.

Clausing's statement said Wickes undertook an "aggressive expansion" after Sun Capital bought it in 2004. The company has 43 showrooms and four distribution centers in California, Illinois and Oregon.

But starting last year, rising fuel prices and woes in the housing and subprime-lending markets hurt the retail furniture industry, he said. Several Wickes Furniture stores are located in areas that have been affected by record foreclosures.

Creditors include mattress makers Sealy (ZZ.N) and Tempur-pedic International (TPX.N) and the Broyhill Furniture unit of Furniture Brands International Inc (FBN.N), according to the Wickes filing.

Many furnishings retailers have sought protection from creditors or gone out of business in recent years. On Monday, furnishings chain Fortunoff said it filed for Chapter 11 bankruptcy protection.

Fortunoff, based in Westbury, New York, said in its statement that it would be acquired by NRDC Equity Partners, owner of the Lord & Taylor department store chain. (Reporting by Karen Jacobs; editing by John Wallace)