Gracious Home, a 45-year old legendary New York City home furnishings retailer, was sold to American Retail Flagship Fund, LLC, effective December 3, 2010. Triton Equity Partners LLC acted as investment banker as well as financial, restructuring and real estate advisor to Gracious Home. Gracious Home had filed voluntary bankruptcy protection under Chapter 11 of the United States Bankruptcy Code on August 13, 2010. The Sale of Gracious Home includes substantially all of the Company’s assets and certain liabilities.
Hahn & Hessen LLP was bankruptcy counsel to Gracious Home (gracioushome.com). Representing the Official Unsecured Creditor’s Committee was Lowenstein Sandler PC as bankruptcy counsel and BDO USA, LLP as financial advisor.
The sale, whose price wasn’t disclosed, marks the end of the Wekselbaum family’s 47-year ownership of Gracious Home, which they founded after emigrating from Cuba. The retailer was hit hard by the recession, and a 2008 expansion into Chelsea, not far from Bed Bath & Beyond and Home Depot, proved a bridge too far. Gracious Home’s annual revenue was about $60 million before its bankruptcy filing, Founder Natan Wekselbaum told Crain’s earlier this year.
The store’s new owners, American Flagship Retail Fund, consist of several investors with experience in real estate and retailing. They include Isidore Mayrock, a former principal partner of Fortunoff, which his family founded in 1923 and sold five years ago. Other investors include Frank Sciame and John Randolph, principals of Sciame Development Inc., the real estate development arm of F.J. Sciame Construction Co.