Simply Interior Homes, LLC Bankruptcy Case

Simply Interior Homes is pursuing a sale of substantially all assets while continuing to administer its Chapter 11 cases, with current activity focused on contract cure and assignment disputes ahead of an August 10 sale hearing. Laufer Group International has objected that the debtors’ proposed $125,810 cure amount omits much of the $826,253.84 it says is owed and must be paid before its contracts are assumed and assigned, while also reserving asserted maritime lien rights, according to the Laufer cure objectionDkt. 253.

The home-textiles and décor business was formed in February 2025 through a carve-out from Keeco, but entered bankruptcy after an undercapitalized opening balance sheet, lost customer programs, tariff pressure and a dispute over transition services strained liquidity. In April 2026, the prepetition lenders exercised proxy rights to install an independent manager after the company defaulted under its secured credit facility. Simply Interior Homes and six affiliates then filed Chapter 11 petitions on June 8 with approximately $17.9 million outstanding under their first-lien credit facility, substantial sponsor-note debt and roughly $12 million of trade payables, as detailed in the first-day declarationDkt. 11.

From the outset, the debtors paired an inventory liquidation with a marketing process for a potential going-concern sale. They entered Chapter 11 seeking a $5 million new-money revolving DIP facility, authority for up to $10 million of roll-up loans and access to cash collateral to fund operations and the sale process, according to the . The case is now in the execution phase of that strategy: cure amounts and transferable contracts are being reconciled, including through , while the court calendar lists a July 27 omnibus hearing and the August 10 sale hearing as the principal near-term dates.

Simply Interior Homes and six affiliated debtors launched a fast 363 sale process for substantially all assets, citing limited liquidity and the need to avoid value-destructive disruption. Under the Bidding Procedures and Sale Motion, Rock Creek Advisors is managing the marketing process, qualified bids are due July 27, 2026 at 4:00 p.m. ET, and any auction is set for July 30 at 10:00 a.m. ET, with a sale hearing targeted for August 6 and closing by August 13.

The procedures matter because DIP secured parties and prepetition lenders can credit bid without a cash deposit, while other qualified bidders must post a 10% good-faith deposit and cannot include financing contingencies. The first overbid must exceed the baseline bid by at least $500,000, and sale objections are due July 20, with supplemental auction-result and adequate-assurance objections due August 4. Counterparties also face a July 15 cure-objection deadline, after which proposed cure amounts become binding if not challenged.

Simply Interior Homes, LLC

Simply Interior Homes, LLC

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Debtors set expedited sale process for substantially all assets

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