The RoomStore furniture chain has filed for bankruptcy protection as company officials project the longtime Phoenix retailer will lose about $2 million this year, the Arizona Republic reported today. Officials with The RoomStores of Phoenix LLC blamed losses on spillover from the 2008 housing crash and increased competition among furniture retailers. The company sent notices to employees last week warning of layoffs and store closures. Co-owner Alan Levitz did not specify what stores were slated for shuttering but advised in the letter that layoffs could begin in February. Levitz said if planned promotional sales were successful and if executives were able to negotiate with creditors, the company could "retain its existing footprint." He also said the majority of customers waiting on orders will get them.
