Jennifer Convertibles files for Chapter 11 bankruptcy

Home furnishings retailer Jennifer Convertibles said Monday that it has filed for reorganization bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York. The retailer said it has reached an agreement with its largest creditor and key foreign supplier Haining Mengnu Co. Ltd. Group under which Mengnu will continue to supply goods and will convert a large portion of its pre-petition debt into common equity, allowing Jennifer Convertibles to stay in business.Jennifer Convertibles was unsuccessful in efforts to obtain alternative financing to cover substantial losses.The plan is pending approval from the bankruptcy court.