HARRISBURG, Pa. (Legal Newsline) - Pennsylvania Attorney General Kathleen Kane announced Friday a lawsuit against two Philadelphia-based online furniture retailers and their owners after they allegedly failed to deliver orders.

MIG Enterprises Inc., doing business as Furniture XO; Salada Enterprises Inc., doing business as Furniture PM; and the companies' owners, Matthew Kolodesh and Nellie Tsan; allegedly took money from consumers for furniture purchased on their websites but failed to deliver the furniture.

Furniture XO allegedly used money from new consumers to pay for orders they placed with manufacturers and/or distributors to fulfill orders from or provide refunds to earlier customers. The company's alleged cash flow problems caused significant delays in order fulfillments. The defendants allegedly opened Furniture PM in an effort to fulfill outstanding orders from Furniture XO and provide refunds to the consumers.

The defendants allegedly never recovered from their cash flow problems, failed to submit most furniture orders, failed to deliver consumers' furniture and failed to provide refunds to consumers who did not receive their orders.

The attorney general's Bureau of Consumer Protection filed the lawsuit in the Philadelphia County Court of Common Pleas on behalf of consumers throughout the country whose orders allegedly went unfulfilled by the companies.

The suit seeks an injunction against the owners to halt their alleged misconduct.

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