Jack's Carpet to file for bankruptcy

By Amy Davis, Investigative Reporter/Consumer Expert, adavis@kprc.com
Published On: Nov 30 2012 06:34:28 PM CST

Nov. 30, 2012: Jack's Carpet has been one of the most popular carpet stores in Houston for years, but KPRC Local 2 has learned the company is filing for bankruptcy. Amy Davis reports.

HOUSTON -

Jack's Carpet has been one of the most popular carpet stores in Houston for years, but KPRC Local 2 has learned the company is filing for bankruptcy.

"The word just came down on Wednesday that we were in the process of filing bankruptcy," Jack's Carpet Operations Manager Tim Woernley told consumer expert Amy Davis. "And, again, our intent is to make good on all contracts and obligations to our customers."

Local 2 first told you in early November about dozens of customers who were owed money from the retailer. They paid deposits and waited months for their carpet, but the carpet never arrived and they couldn't get their money back, either.

Woernley told Local 2 and customers that Jack's Carpet was going to make good and get the money back to everyone.

In the last several months, Jack's Carpet has closed 13 of its 21 stores. Woernley blamed a failed expansion during the economy downturn for the company's financial problems. He said the owner hasn't decided what type of bankruptcy he will file.

If Jack's Carpet files a Chapter 7 bankruptcy, customers will need to file a proof of claim to get paid out of the bankruptcy court. If the company files Chapter 11, there will be a plan filed with the court that will outline how customers will be reimbursed.

Woernley said, most likely, everyone who paid deposits after Nov. 1 will still get the flooring they paid for. Everyone who paid before will become part of the bankruptcy case.

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