American Home, one of the Tucson area's biggest furniture retailers, has filed for Chapter 11 and will liquidate its Arizona stores, the company announced today.
The company proposed to the U.S. Bankruptcy Court in Los Angeles that it would liquidate all its operations in the Arizona market and two of its five stores in New Mexico.
“Under this newly proposed structure, we would be able to preserve our 70-plus year heritage and continue to serve customers in the New Mexico market,” Ted Leveque, chief operating officer for American Home, said in a statement. “I want to make it clear that we are still in business in Albuquerque, Farmington and Santa Fe."
Albuquerque-based American Home, which has been in business since 1936, employs 650 people.
In September, American Home began closing down its warehouse location at West Prince Road and Interstate 10. American Home opened in Tucson in 1993 and rapidly expanded during the housing boom, opening stores in Sahuarita and on the Southeast Side.
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The company said, like other businesses, it's being affected by a national decline in home sales, a credit crunch that's affecting both business and consumers and a decrease in consumer spending.