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SAN DIEGO-Some 25 stores operated by Krause’s Furniture Inc., including outlets in La Mesa and Chula Vista, will begin the closure process today.

The stores, most of which are located in Texas and California, include three Castro Convertible showrooms in the Northeast. The Krause’s and Castro brands are both renowned for made-to-order sleeper sofas.

As previously announced, Krause’s expects to continue to operate its 57 remaining showrooms throughout the country as well as its manufacturing facilities.

The company, a vertically integrated manufacturer and retailer of made-to-order upholstered furniture and accessories, filed for protection under Chapter 11 of the Federal Bankruptcy Code on July 20 in the U.S. Bankruptcy Court in Santa Ana, CA.

Buxbaum Group of Encino received court approval yesterday to administer the sale of the merchandise at the 25 stores being closed.

The stores closing in California are in Chula Vista, La Mesa, Los Angeles, Montclair, Palm Desert, Sacramento, San Bernardino, Santa Clarita and Van Nuys.

Earlier this year, the company had closed 11 under-performing showrooms in various markets. Krause’s currently has 988 employees and plans to retain approximately 880 following the store closures.

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