(Reuters) - The parent company of luxury home decor and furnishings retailer Gump’s Corp has filed for creditor protection, becoming the latest in a string of U.S. retailers to do so in an industry-wide upheaval.
Gump’s Corp, which was founded in 1861 near Union square in San Francisco, said it had been navigating an overwhelmingly difficult retail environment. More recently, the company established Gump’s By Mail to sell goods online.
Gump’s Holdings LLC, which owns Gump’s Corp and Gump’s By Mail, filed for bankruptcy protection under Chapter 11 on Aug. 3, the parent company said in a statement on Tuesday.
The company said it would continue its efforts to sell all or part of its business as a going concern.
The U.S. retail scene has been swept up in a wave of bankruptcies, with more than 10 filings last year, as the sector faces mounting competition from online marketplaces.
“The Gump’s store is an institution beloved of generations of San Franciscans, and customers around the country are captivated by its distinctive, elegant products from around the world. We will continue to seek a source of capital to enable this storied brand to continue to serve its devoted customers,” Chief Operating Officer Tony Lopez said.
The company expects its cash on hand and debtor-in-possession financing to provide it with liquidity to maintain value in its assets.
Gump’s Holdings listed assets and liabilities in the range of $10 million to $50 million, according to a filing in the U.S. Bankruptcy Court for the District of Nevada.
Hilco and Gordon Brothers have joint ventured to act as liquidators for Gump’s merchandise while Garman Turner Gordon LLP is the legal adviser to the company.
Reporting by Ishita Chigilli Palli in Bengaluru; Editing by Amrutha Gayathri
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