The acquisition involves an estimated 2.5 million sf of retail space in six Southeastern states. The offer equates to about $18.32 per sf. It's the biggest retail deal of its kind this year, based on total sf, area retail brokers tell GlobeSt.com.
If the court approves the deal, Rooms To Go will pay rival RoomStore of Richmond, VA a $995,000 penalty or breakup fee because RoomStore was the first bidder that signed a definitive agreement with Rhodes to do the deal, court officials confirm for GlobeSt.com. RoomStore's bid was $38.8 million. Locally based Hilco Real Estate Co. and Hilco Merchant Resources LLC were part of RoomStore's bidding team.
Rooms To Go officials couldn't be reached by GlobeSt.com's publication deadline to learn how many Rhodes stores will remain open under the new ownership. But area brokers tell GlobeSt.com at least six Rhodes stores will probably close because they are at least a mile within a Rooms To Go storefront.
The 126-year-old Publishing System Rhodes Furniture voluntarily filed for protection under the U.S. Bankruptcy Code on Nov. 4, listing total liabilities of $19 million to 30 major creditors, as GlobeSt.com previously reported.
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