State May Block Sale: California officials said...

State May Block Sale: California officials said they would decide by today whether to take legal action to halt or postpone a three-month liquidation sale that Furnishings 2000 planned to raise cash to pay creditors. A federal bankruptcy judge in New York had approved the sale, which would begin Saturday at 22 of the firm’s California stores. The sale would be managed by a court-appointed creditor committee of the Mira Loma-based company, which entered bankruptcy proceedings in New York. But California officials attacked the plan because the judge also authorized the creditors committee to spend up to $18.5 million to buy additional furniture to make the event more attractive to shoppers. Such a move may violate California law, officials said.