JRA Furniture files for Chapter 7
WASHINGTON --A company that supplied allegedly faulty Martha Stewart-brand glass-top patio tables that shatter during normal use has filed for bankruptcy.
JRA Furniture Industries LLC on Tuesday filed a Chapter 7 petition in the U.S. Bankruptcy Court in Wilmington, Del.
The Cerritos, Calif., company is a defendant in a class-action lawsuit along with
Filed in 2005, the lawsuit alleges that patio furniture sold at Kmart stores under the Martha Stewart brand "spontaneously shatters during ordinary use."
In its bare-bones petition, privately held JRA Furniture said it had less than $1 million each in assets and liabilities.
In a Chapter 7 case, a trustee is appointed to liquidate a company's assets. It differs from. Chapter 11, which allows a company to protect itself from creditors and reorganize through a bankruptcy court.
A representative of JRA Furniture wasn't available to comment.
