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Rosa's files for Ch. 11, will continue operating

Mon, Dec 13th 2010 12:00 am
By JAMES FINK
jfink@bizjournals.com | 716-541-1611

In a move that was anticipated in recent weeks, the parent company of Cheektowaga-based Rosa's Home Stores filed for Chapter 11 protection.

Despite the filing Dec. 9 in U.S. Bankruptcy Court, company officials said it will be "business as usual" at its four stores.

"This will allow Rosa's to continue operating our business while we work diligently to implement our restructuring plan and reorganize various departments within our company," said a statement issued by President Dean Rallo.

In the 179-page filing with Bankruptcy Court Judge Michael Kaplan, Rosa's listed liabilities in the range of $1 million to $10 million and assets in the same range. The filing claimed Rosa's has between 1,000 and 5,000 creditors, including $408,951 owed to Action Industries Inc., $173,287 to The Buffalo News and $130,524 to Whirlpool Corp. Electrolux Corp. is owed nearly $193,000.

Rallo, in his statement, said all four stores will remain open, current sales orders will "continue to be delivered as scheduled" and all warranties will be intact and valid.

A handful of Rosa's employees have been let go, sources said.