HOBO Files For Bankruptcy, Liquidation Sale Begins

OAK LAWN, IL -- HOBO has started liquidating inventory at its Oak Lawn location, after the company that owns the regional home improvement chain filed for bankruptcy last week. The retailer had earlier announced that it would be winding down its operations by liquidating assets to pay off it’s creditors.

In a statement, the company said it filed for Chapter 11 bankruptcy late Thursday afternoon “to wind down its operations in an orderly manner while liquidating its assets to maximize return to its creditors.”

A bankruptcy attorney for the retailer cited intense competition from rapidly expanding, big box home improvement stores as the reason for chain's demise. The HOBO chain reported sales of $80 million in 2017. A liquidator has been hired to conduct storewide sales.

The Home Owners Bargain Outlet, also known as HOBO, owns two stores in Wisconsin, and five in Illinois, including the Oak Lawn store at 87th Street and Cicero Avenue. HOBO recently renewed its lease at the Oak Lawn location for 24 months.

Some homeowners who’ve ordered flooring and cabinets from HOBO aren’t able to get refunds because the store has declared bankruptcy, CBS 2 Chicago reported. HOBO is said to owe a dozen or so venders more than $5 million dollars. Others are owed hundreds of thousands of dollars. Some HOBO vendors have refused to ship custom orders until they are paid.

The retailer intends to close its seven stores by Dec. 31, 2018. Meanwhile, the liquidation sale is on in Oak Lawn.

~ Photo by Patch Editor Lorraine Swanson