Douglas Furniture of California, the El Segundo-based maker of sofas, reclining chairs and dining sets, filed for bankruptcy protection after sales plunged amid the teetering national economy and real estate bust.
The privately-help company filed for Chapter 11 bankruptcy protection Monday in the U.S. Bankruptcy Court in Los Angeles.
The company may disappear altogether if it can not find a buyer that will continue the business, according to the court filing.
The firm's bankruptcy legal counsel, Levene, Neale, Bender, Rankin & Brill in Los Angeles, did not return a call seeking comment.
The furniture market has suffered from a severe drop in home sales. That has led to closure of some major furniture stores such as Levitz, which sold Douglas Furniture products.
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