Cuomo intervenes for consumers in bankruptcy case

John O'Brien Feb. 24, 2009, 6:00pm


ALBANY, N.Y. (Legal Newsline) - New York Attorney General Andrew Cuomo is intervening in the bankruptcy proceedings of Utica-based retailer Affordable Furniture.

Cuomo says his goal is to retrieve prepaid furniture from the company, which has sold its assets to another company. U.S. Bankruptcy Judge Stephen Gerling granted Cuomo's motion to intervene Monday.

Cuomo said customers may pick up furniture they have paid for because of an agreement with the new owner. He also wants to make sure that customers with unresolved complaints are included in any distribution of funds.

"Plain and simple, consumers should get what they paid for, even in cases where the business has filed for bankruptcy," Cuomo said.

"This furniture retailer shut down before consumers could obtain what was rightfully theirs. It's bad business. In this uncertain economy, consumers should also take the necessary steps to protect themselves before paying in-full for any retailer's delivery orders."

More than 35 consumers say they went to pick up their furniture to find that the business shut down. Complainants are owed more than $40,000 in refunds or furniture, Cuomo claims.

More than 100 customers paid for furniture they have not received, court documents show.

From Legal Newsline: Reach John O'Brien by e-mail at john@legalnewsline

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