Unsecured creditors want control of RoomStore Inc.'s bankruptcy case wrested from the company, alleging that the liquidating furniture retailer used the sales tax it collected from customers to pay its own expenses, Dow Jones DBR Small Cap reported today. The unsecured creditors' committee said that both it and bankruptcy lender Salus Capital Partners LLC "have lost all faith and confidence in the abilities of the board to manage the debtor's remaining affairs," citing a stream of "indiscretions" that the creditors say have plunged the case into chaos. Lender Salus has declared a default under the loan that was keeping RoomStore afloat during its case, according to the creditors, and is poised to simply collect its collateral-the remaining assets of the debtors-and walk away.
