PENNSAUKEN, N.J. — Customers of American Appliance, the bankrupt regional majap chain, will receive merchandise that was paid for prior to the dealer's surprise demise thanks to a deal devised in New Jersey U.S. Bankruptcy Court by American and its creditors.
Under the arrangement, floor-plan lenders including Frigidaire and Maytag will contact 1,165 customers next month by mail to arrange for delivery or pick-up of their white and brown goods purchases. In lieu of a liquidation sale, vendors and other major creditors including GE Capital and First Union National Bank will repossess American's inventory over the next 30 days but will honor customer claims.
An attorney for American told the court that all parties "have stepped up to the plate. We want to make sure the consumers are protected." Customers were initially out in the cold when the 33-year-old retailer shut its doors and fired its employees without notice last month.