Wickes to auction assets

Wheeling-based Wickes Furniture Co. has abandoned hopes of reorganization and agreed to put itself on the bankruptcy auction block before the end of the month, according to court papers.

Citing "operating losses and liquidity concerns," Wickes said Monday it would seek bankruptcy court approval to sell all its assets by Feb. 29. The company said it would be sold either as an operating business or piecemeal in a liquidation.

A stepped-up sale schedule is built into the $30 million in Chapter 11 loans that banks are offering the struggling retailer, according to documents filed Monday in the U.S. Bankruptcy Court in Wilmington, Del. The banks are led by Wells Fargo Retail Finance.

Deals have to close by Feb. 29, according to Wickes' agreement with its banks.

One of the largest furniture retailers in the country, Wickes filed for Chapter 11 protection Sunday, blaming record home foreclosures and the subprime mortgage mess for its need to take cover from creditors.

At the time, chief financial officer Richard V. Clausing said Wickes was "cautiously optimistic" it could survive but acknowledged liquidation was a possibility.

On Monday, Wickes sent out notices to major creditors highlighting provisions of its bankruptcy finance package terms that require it to send marketing materials to all potential bidders by Feb. 12.

Wickes listed $190 million in assets and $208 million in liabilities in its Chapter 11 filings. The privately held company said it has been "highly leveraged" since it was acquired by Sun Capital Partners of Boca Raton, Fla., in 2004. After years of successful expansion, Wickes hit a liquidity crisis in the fallout of the housing market collapse, one that has consumers wary of spending on new furniture.