PARAMUS, N.J.—Einstein Moomjy has filed for bankruptcy re-organization and cut its operations to the bone in the face of plummeting revenue brought on by the housing slump and recession, said the company’s attorney.
Daniel M. Stolz, the Millburn-based attorney, said Einstein Moomjy hopes that a bankruptcy sale, expected to take place in late September or early October, at the three stores will enable the company to get back on its feet and continue to operate North Plainfield and Whippany stores. The lease on the Paramus store expires in February, he said, and the company does not expect the landlord to extend it.
“There is hope that these sales would raise enough money to keep the creditors happy and allow the Moomjys to continue in business,” Stolz said.
In Chapter 11 bankruptcy papers filed Aug. 19, Einstein Moomjy reported assets of $2.5 million and liabilities of $4.47 million, about half of that for unpaid rent.
“The economy has been killing them,” said Stolz. “They kept hoping that the economy was going to turn around. They kept waiting and waiting for it [business] to pick up, and it just hasn’t been the case.”
Revenue so far this year is about $921,000, compared to $6.65 million in 2010 and $13.35 million in 2009, court papers show.
The company shuttered its New York City showroom last year, closed one of two Paramus stores and also shut a warehouse in Pine Brook in an effort to contain costs, Stolz said. But that wasn’t enough to cope with the dramatic decline in business, he said.
“It’s devastating,” said Andrea Moomjy. “My father ran a fantastic business for many years. My father would do anything for a customer. Obviously, it’s a difficult time when you spend your life doing something and then it unravels.”
Even before the recession, the company suffered from the collapse in the housing market, she said.
“My grandfather used to say this years ago: ‘When the economy starts weakening, people in flooring feel it first, because that’s where they [consumers] can cut back first,” she said. “And then in the recovery, we are the last to feel it.”
For more information, about Einstein Moomjy visit einsteinmoomjy.com.