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August 2005 - Rhodes, a 126-year-old furniture company, filed a reorganization plan on June 20 and said it intended to emerge from bankruptcy this fall. Rhodes had already closed three Homemakers stores in the Chicago area last year. Retail experts speculated that Rhodes is closing stores to help it emerge from bankruptcy as a viable retailer.

The Atlanta Journal-Constitution reported July 13 that Rhodes, which filed for bankruptcy in November 2004, has suffered from inconsistent leadership, a poor mix of products and the loss of talented employees. Rhodes owes creditors $59.5 million, according to the report. Rhodes was previously owned by Heilig-Meyers, a Richmond, Va.-based home furnishings chain that bought the Homemakers stores in 1998. Heilig-Meyers filed for bankruptcy five years ago and closed its stores.

Homemakers tried to adapt 11 years ago by closing its upscale stores and opening warehouse-like showrooms, parroting a concept of another extinct Chicago retailer, Levitz Furniture Corp. But Homemakers, known for its warbling theme song in television ads, found itself bombarded by competitors ranging from discount stores such as Wal-Mart, Target and Costco, to specialty stores Crate & Barrel, Ikea, Rooms to Go, Walter E. Smithe and Ethan Allen.