A.B.C. Carpet is in a confirmed liquidation posture, with the debtors’ chapter 11 path now governed by the confirmed amended joint plan of liquidationDkt. 382 rather than an operating reorganization. The case began with the retailer’s September 8, 2021 chapter 11 filing in the Southern District of New York, where A.B.C. Carpet Co. and affiliated debtor A.B.C. Home Furnishings entered court protection after accumulating a layered prepetition capital structure that included an $8.0 million first-lien Gerber facility and substantial unsecured insider and lender debt reflected in the early case record and schedules Voluntary PetitionDkt. 1 Rose AffidavitDkt. 17.
The filed schedules show the case was not simply a trade-liability cleanup: A.B.C. Home Furnishings listed a $9.9 million Northern Trust unsecured loan and multiple Paulette Cole unsecured loans, while A.B.C. Carpet Co. separately scheduled a $5.65 million Northern Trust unsecured loan and additional Paulette Cole obligations, leaving the debtors with more than $50 million of identified prepetition debt across the capital data in the record A.B.C. Home Furnishings schedulesDkt. 204 A.B.C. Carpet schedulesDkt. 206. That debt profile, combined with the secured Gerber position, shaped a case that moved toward asset monetization and claims administration rather than balance-sheet rehabilitation.
By late February 2022, the debtors had filed an amended plan expressly framed as a liquidation plan with six classes and the debtors themselves as plan proponents Amended Plan of LiquidationDkt. 370. The court confirmed that plan on March 3, 2022, granting related relief and putting the estate on a post-confirmation liquidation track Confirmation OrderDkt. 382. The context pack does not identify an upcoming hearing or open near-term milestone, so the operative status is plan implementation and liquidation administration under the confirmed plan.
