Struggling furniture chain Domain Home may file for bankruptcy protection if it cannot find an investor to keep the Norwood company afloat in coming weeks, according to an industry executive briefed on the matter.
The move comes less than a year after New Jersey private investment firm Synergy Enterprises LLC purchased the upscale 27-store chain with plans to open as many as 15 new stores in the next three years.
Now, amid a prolonged housing slump and growing concerns over a recession, Synergy is rethinking its plans.
Domain's chief executive, Judy George, who founded the company in 1985, did not return calls seeking comment.
In a statement, a Domain spokesman, said, "The company is exploring a range of strategic alternatives. We will make further disclosures as appropriate."
But George, in a candid e-mail yesterday to Domain employees that was obtained by The Boston Globe, said: "Please keep me in your thoughts and prayers. I will be given 21 days to find a possible investor."
The company has already laid off several employees at its corporate headquarters in Norwood, and store closures are being considered, according to the executive who asked for anonymity because the person is not authorized to speak for Domain.
The company has stores in Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, and Virginia.
Synergy, which bought the furniture chain from Aga Foodservice Group, the publicly traded United Kingdom maker of high-priced range cookers and refrigerators, declined to comment. Aga still retains a 15 percent stake in Domain.
The furniture industry has struggled in recent years as inexpensive imports from China have driven down prices, making it harder to compete. Customers have also changed their buying habits, demanding shorter delivery periods for their furniture, instead of the typical 12 to 22 weeks.
The past year has been especially challenging with declining home sales, a credit crunch, rising gas prices, and restrained consumer spending, leading several major furniture chains, including New York-based Levitz Furniture, to file for bankruptcy protection.
Jenn Abelson can be reached at abelson@globe.com.
