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, Bloomberg News reported. An offer last year from private-equity firm MHR Fund Management fell through this April after reaching advanced stages. 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. New York-based ABC Carpet & Home, which is working with advisers from B. Riley Financial Inc. and Greenberg Traurig, has been seeking new financing or a buyer for over a year since the planned private-equity sale fell through. The company’s popular restaurant business, including ABC Kitchen, wouldn’t be affected by a restructuring.
