Luxury furniture retailer ABC Carpet & Home on Friday secured court approval to tap part of a $5.7 million loan to fund operations while it is in bankruptcy, Reuters reported. During a virtual hearing, Bankruptcy Judge David S. Jones in Manhattan approved access by the company to $2.25 million of the loan on an interim basis and will consider the remainder later this month. The New York-based company filed for chapter 11 protection with plans to sell its assets on Wednesday with about $8 million in secured debt and another $80 million in unsecured debt. The company blamed the effects of the COVID-19 pandemic for its troubles, including the flight of many prospective customers who left New York. The company is looking to sell its assets by the end of October and has lined up a $15.3 million lead bid from 888 Capital, an entity controlled by Regal Investments. ABC owner Paulette Cole, the great-granddaughter of the company’s founder, holds a minority interest in 888 Capital. 888 Capital is also providing the bankruptcy loan.
