United Furniture Industries Inc. has filed for chapter 11 protection in an attempt to avoid an involuntary liquidation sought by its largest creditor, Wells Fargo & Co., the Winston-Salem (N.C.) Journal reported. Separately, United has filed its response to Wells Fargo's petition, saying it is "founded upon false and misleading statements" and is "premised on inaccurate and grossly misleading allegation." Both motions were filed in the Northern District of Mississippi. Federal bankruptcy Judge Selene Maddox set a 10 a.m. Friday hearing on the chapter 11 corporate restructuring motion. Maddox did not conduct a hearing Friday into the chapter 7 liquidating motion. United made promotional- to mid-priced upholstered furniture in the U.S. under its brand and the Lane Home Furnishings brand. The manufacturer also imported wooden bedroom and dining furniture. The United motions are the first formal legal response from United since it unexpectedly shut down on Nov. 22.
