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Webster Furniture in Rehoboth Beach, a popular local business since 1948, has closed its doors and filed for Chapter 7 bankruptcy protection.
Attorney Amy Brown, of the Wilmington firm Werb and Sullivan, said the store filed for bankruptcy on Friday, Aug. 29. She said the bankruptcy was a result of a nationwide housing slump that has created tough times for the furniture industry.
Brown said from this point, a trustee is appointed who will look at the company’s assets and liabilities. The trustee, Jeoffrey Burtch of the Wilmington firm Cooch and Taylor, will have authority to make decisions on the store’s assets. Burtch was not available for comment.
Customers with outstanding orders have been wondering what happened at the Route 1 furniture store.
The Cape Gazette received a call from an anonymous ex-employee saying the store had closed.
Employees arrived at work last week to find the door locked with a sign saying the store was closed for inventory.
Customers with furniture on order were not able to reach anyone at the store to pick up orders. One customer, Julekha Dash, said she had ordered a couch and love seat in March that did arrive but still had tables, a lamp and a desk that are still out on order. Dash said her husband last spoke to store representatives a few weeks ago who said they would have Dash’s order ready by late September.
Another customer said she had furniture on order that arrived and was scheduled for delivery. The customer, who wished to remain nameless, said she received a notice of bankruptcy for the store in the mail and tried calling the store to no avail. She said her salesperson called her and explained that the employees did not know about the closing until Aug. 26. The salesperson said employees were caught completely off guard and told to come right away to pick up their pay, which was delivered in cash.
The customer said she was willing to pay the balance of her order and pick up her furniture.
Calls to owner Michael DiGangi have not been returned. Former owner Don Webster said he did not know what happened at the store.
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