Filing Alert: Simply Interior Homes Chapter 11

Update (Jun. 8, 2026): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of Simply Interior Homes, LLC.

Simply Interior Homes, LLC and its debtor affiliates⁽¹⁾, a Rock Hill, SC-based designer, importer, and distributor of home textiles, fashion bedding, window treatments, and bath products, filed for Chapter 11 protection on Jun. 8 in the U.S. Bankruptcy Court for the District of Delaware.

The Debtors—formed in February 2025 through a Centre Lane Partners (CLP)-sponsored carve-out of the soft goods divisions of portfolio company Keeco, LLC (since rebranded "Live Comfortably")—attribute their distress to a structurally undercapitalized opening balance sheet and a cascade of inherited operational deficiencies. Against the diligence projections on which the Prepetition Lenders underwrote financing—approximately $5 million of opening cash and roughly $49 million of finished goods inventory—the Debtors commenced operations with no cash and only approximately $27 million of inventory (roughly $22 million of it excess and obsolete), against assumed payables of approximately $32 million versus a forecasted $25 million, forcing management to revise the 2025 revenue plan from $185 million to $86 million. Inherited fill rates of 30–40%, well short of the 95%-plus threshold demanded by retail partners, triggered the permanent loss of material programs, including with Wal-Mart, leaving the Debtors with approximately $84.7 million of gross revenue and approximately $3.4 million of Adjusted EBITDA in FY2025. Reciprocal tariffs effective April 15, 2025 further compressed margins, while CLP declined to fund the impact and directed the Debtors to absorb rather than pass through the cost increases.

Liquidity deterioration was compounded by a dispute under the Transition Services Agreement (TSA), pursuant to which Live Comfortably provides substantially all of the Debtors' back-office and certain operational functions. From January to May 2026, more than 75% of the Debtors' customer collections were remitted to Live Comfortably's bank accounts, in weekly amounts ranging from $300,000 to $1.5 million, and Live Comfortably, at CLP's direction, frequently delayed remitting those funds to the Debtors despite repeated demands. The Debtors further allege that Live Comfortably may have inappropriately set off cash collections and have demanded a reconciliation of "wrong-pockets" payments and setoffs. On April 28, 2026, Live Comfortably delivered a notice of breach asserting approximately $5.1 million in unpaid TSA charges and reserving the right to terminate or suspend services—an event the Debtors contend would effectively shut down substantially all back-office operations and likely trigger an event of default under the Prepetition Credit Facility. A succession of CLP-led recapitalization, M&A, and refinancing efforts failed—most notably a planned bolt-on acquisition that collapsed for lack of financing—and CLP ultimately refused further liquidity or capital support. Following repeated defaults and an overadvanced borrowing base under the Prepetition Credit Facility, the Administrative Agent delivered a Notice of Exercise of Proxy Rights on April 27, 2026, exercising voting rights to remove Holdings in its capacity as sole member of parent Debtor AcquisitionCo and appointing Stuart Kaufman as Independent Manager with sole and exclusive decision-making authority. The Debtors intend to investigate amounts owed by Live Comfortably and to evaluate potential claims and causes of action against related or other parties arising from the circumstances leading to these cases.

Lacking any viable out-of-court alternative and facing unfundable liquidity needs, the Debtors filed to pursue a dual-track value-maximizing process: an orderly liquidation of on-hand and in-transit inventory, trade receivables, and FF&E through liquidation consultant SB360 Capital Partners, run in parallel with a going-concern sale and marketing process led by investment banker Rock Creek Advisors, with any consummated going-concern sale removing the applicable assets from the liquidation. No stalking horse had been identified as of the Petition Date, though the Debtors intend to file a bidding procedures motion shortly and designate a stalking horse to establish an auction floor, subject to higher and better bids. To fund the cases, the Debtors negotiated a superpriority senior secured asset-based DIP facility from the Prepetition Lenders (GRC SPV Investments, LLC and Wingspire Capital LLC), comprising $5 million of new-money revolving loans plus a second-out roll-up of prepetition secured obligations at a 3:1 ratio to new money funded, capped at $10 million, together with consensual use of Cash Collateral. The Debtors were unable to obtain financing on a fully unsecured or junior secured basis, and the roll-up—required as a condition of the DIP Facility—remains subject to challenge during the Challenge Period.

Simply Interior Homes, LLC reports $100 million to $500 million in both assets and liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-10922.

⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.

Chapter 11 Debtors

Top Unsecured Claims

Key Parties

General Bankruptcy Co-counsel:

• L. Katherine Good
  Potter Anderson & Corroon LLP
  Email: kgood@potteranderson.com

General Bankruptcy Co-counsel:

• Goodwin Procter LLP

Financial Advisor / CRO:

• Reflect Advisors, LLC (Adam Zalev)

Sales Agent:

• Rock Creek Advisors, LLC

Claims Agent:

• Epiq Corporate Restructuring, LLC

Equity Security Holders:

• Simply Interior Homes AcquisitionCo, LLC – 100% Equity Interest

Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.

Stay informed on every Chapter 11 bankruptcy case with liabilities exceeding $10 million. Subscribe for free to have our coverage delivered directly to your inbox, and explore our full archive of past summaries.

Explore Bondoro Insights for live case dockets and comprehensive coverage of material filings from petition to plan confirmation.