Lacks Having Closing Sales as it Files for Bankruptcy
Texas-based Lacks Stores, Inc. is filing for Chapter 11 federal bankruptcy. Lack’s has been in business for 73 years. In a press release, the Victoria-based furniture company said, while it's been profitable this year, lenders no longer want to help the company finance customer purchases.
Lacks also gave some information about how it was affected by the recession:
Before the current recession, the company sales were in excess of $200 million in 39 stores and there were 1200 associates working for the company. After the recession began in 2008, the company experienced a 20% drop in sales, and was forced to make dramatic cuts in expenses, including the termination of 300 of its associates. These efforts were successful and the company returned to profitability during 2009, and has been profitable in 2010.
Lacks' 36 retail stores across the state, including three in Austin, will be holding "store closing" sales over the next couple of months.
The press release also had a little history on the Texas company:
Lack’s was founded in 1938 by Dave and Rebecca Lack when they purchased a 900-sq. foot auto supply store in Beeville, TX. In 1941, they purchased a store in Victoria and the family moved to that city. Victoria still serves as the company's headquarters. During World War II, the company had a difficult time getting products made of rubber and steel because of the war effort, and added furniture as a way to boost its sales. This was a successful move and furniture--and later appliances and electronics--became part of the company's product mix. In the 1970's, auto supplies and other small items were phased out.