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Breaking Flooring News

Edge Flooring declares Chapter 7; debts ‘between $1 mil and $100 mil'

November 30, 2007

Edge Flooring, a manufacturer of flooring that combined real ceramic and stone tile on an interlocking laminate system, filed for Chapter 7 bankruptcy recently at the U.S. Bankruptcy Court in Delaware. Based in Dalton, Ga., the company was purchased by Dallas-based private equity firm Hunt Special Situations Group two years ago.

A Chapter 7 bankruptcy indicates that a company plans to liquidate its assets rather than file for a plan of reorganization as in a Chapter 11. According to the Chattanooga Times Free Press, at the time of filing Edge Flooring listed “between $100,001 to $1 million in estimated assets and between $1 million and $100 million in estimated liabilities.”

At its peak, the five-year-old company sold its products to more than 3,300 retail locations around the world through distributors in the U.S., Canada, Australia and Europe. The company was also widely known for distinctive print ads aimed at promoting the realism of the flooring. In one ad, a family gathers around a photograph of a birthday cake while a little girl tries in vain to blow out the candles. “Why settle for a picture when you can have the real thing?” the tagline read.

Edge is the most recent flooring company to declare Chapter 7 bankruptcy in a slumping housing market. Last month, hard surface distributor Hoboken Floors of Wayne, N.J., closed after 77 years in business. Shortly after, Wood Flooring International, a supplier of exotic hardwood flooring, announced plans to liquidate.

Calls seeking comment were not returned.

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