Barker Bros. ‘to Reorganize,’ Closes Stores

Barker Bros., one of two remaining major furniture chains based in the Los Angeles area, closed its 10 Southern California outlets Friday while preparing “to reorganize” its business.

A supplier, who asked to remain unidentified, said he was told by company sources Friday that the firm had filed for bankruptcy protection. Customers and contractors said they were notified that the chain had stopped operating and would make a formal announcement of its plans next week.

Barker Bros. officials could not be reached for comment late Friday. However, a recorded announcement at the chain’s Glendale store said that outlet was “closed until further notice while our company’s administration is preparing to reorganize.”

Recorded announcements at some of the chain’s other outlets said the company was “closed until further notice” and that it was “temporarily out of business.”

Furniture industry sources said the 111-year-old company is yet another victim of several problems affecting retailing in the 1990s. The problems include the highly leveraged takeover boom of the 1980s; the persistent recession that has eroded consumer spending, especially for big-ticket items such as furniture, and the entry into Southern California of giant self-serve furniture warehouses Ikea and Stor.

Earlier this year, Stylus Furniture Inc., a Corona-based chain of 19 furniture stores, filed for bankruptcy protection. At the time, analysts said furniture retailers would be among the hardest hit by consumer anxiety brought on by the recession.

Barker Bros. was purchased several years ago by Prism Capital, a financial investment firm with no direct previous experience in the furniture industry. The purchase, sources said, loaded the retailer with so much debt that it became increasingly difficult to remain profitable as the economy soured and consumer spending dropped.

Information on Barker Bros.’ financial condition--including its assets and liabilities--was unavailable late Friday.

Prism Capital also bought Breuner’s, a Northern California chain of furniture stores. Over the last few years, both chains have been steadily closing poorly performing outlets.

A Barker Bros. contractor, who said he had installed carpet for the retailer since 1954, said there had been increasing signs in recent months that the chain was in trouble. “But they have always been slow in paying their bills so it was hard to know that this was coming,” he said.

The contractor, who asked to remain anonymous, said Barker Bros. employees told him Friday that they had been told that the company was out of business and that there was not enough money to meet the week’s payroll.