Updated: Thursday, 09 Dec 2010, 6:22 PM EST
Published : Thursday, 09 Dec 2010, 6:22 PM EST
BUFFALO, N.Y. (WIVB) - Rosa's Home Stores has officially filed for Chapter 11 bankruptcy.
Rosa's filed for bankruptcy at 1 p.m. Thursday afternoon in a nearly 200-page filing that lists over 200 people and businesses owed at least $2 million by Rosa's Home Stores.
While employees found out on Wednesday, many customers found out about the bankruptcy filing on Thursday.
"I guess this is what the economy is doing to everyone. Now Rosa's is filing for bankruptcy," said Huey Hornsby.
Thursday afternoon, lawyers for Rosa's Home Stores filed for Chapter 11 bankruptcy protection, saying it will allow the stores to continue operating while re-organizing various departments. President Dean Rallo promises it will be business as usual and that current sales orders will continue to be delivered and all warranties, both manufacturer and extended, will remain intact.
We asked Better Business Bureau President Dan Polino if Rosa's has many customer complaints. Polino said, "Yes, they have quite a number of complaints. We give them a poor rating recently of a "D" report. That is not at all unusual leading to a bankruptcy. Obviously, the company has been having difficulty. On the other hand, Rosa's is a local institution and we all hope they come back. And consumers should contact the store and take them at their word for the time being."
This filing lists debts of almost $2 million to 20 companies, including media outlets who ran their ads. It goes on to list almost 200 other western New Yorkers owed smaller amounts. A dozen Rosa's employees were laid off recently, but the company hasn't said publicly whether more might be coming or whether all four stores can remain open.
"Well, I'm hoping that they lower their prices even more," said one consumer.
These papers also indicate one party that was paid-in-full, a Syracuse attorney paid up-front $80,000 for this filing. You can read the statement from Rosa's here.