X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ATLANTA-Orlando-based Rooms To Go will be acquiring 50 of locally based Rhodes Furniture’s 65 stores Monday for $45.8 million, or an average $916,000 per store, if U.S. Bankruptcy Court Judge James E. Massey approves the deal, court officials confirm for GlobeSt.com.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt. NET LEASE Awards 2021Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.