LV firm bankrupt

Friday, Dec. 21, 2001 | 10:55 a.m.

Carpet Barn and its parent company, Nations Flooring, filed for Chapter 11 bankruptcy protection Thursday in New York.

The moves are part of a plan that will result in the sale of both companies to an investment group, said a Nations Flooring spokeswoman.

The reorganization plan would result in an increased focus on the Las Vegas market, where Carpet Barn was founded in 1971.

The corporate office, three retail stores, a factory outlet center, a warehouse and several design centers will remain open in Southern Nevada under the plan.

Nations Flooring operations in Washington D.C., Idaho, South Carolina and Utah have been closed as part of the reorganization effort.

Over-expansion into unprofitable markets, high debt service expense and a shortage of working capital that resulted in negative cash flows were cited by Nations Flooring officials as causing its bankruptcy.

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