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New York’s Iconic ABC Carpet & Home Faces Lender Takeover
- Luxury home retailer unable to repay debt after revenue drop
- Pandemic closures hurt traffic as wealthy locals left town
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Lenders to ABC Carpet & Home, the more than century-old New York luxury home goods retailer, are mulling a distressed takeover of the company after financial hits from Covid-19 and real estate problems left it unable to pay its bills, according to people familiar with the plans.
An offer last year from private-equity firm MHR Fund Management fell through this April after reaching advanced stages, said the people, who asked not to be named because discussions are private. An investor group with experience in home and carpet retailing may take over the company through a bankruptcy filing or an out-of-court restructuring, one of the people said.