Inventory will be liquidated for creditor GE Capital
WAIKELE, Hawaii — While the Ashley Furniture HomeStores

network has been growing fast, a recent closing here shows it’s not immune to failure.

The licensee of the 50,000-square-foot HomeStore in Waikele on Hawaii’s Oahu island closed with no warning to consumers this month.

An auction operator is liquidating the inventory for creditor GE Capital, and the state Office of Consumer Protection has opened an investigation into the closing, which left some customers waiting for refunds or furniture deliveries, according to news reports.

The store was owned by Michael Cutler and George Norcross, who could not be reached for comment. Ted Pettit, an attorney representing them, did not return a call.

Marty McClain, owner of McClain Auctions, confirmed that his company would sell off nearly $3 million in inventory and other items. The proceeds were expected to go to GE Capital, he said.

Cutler said in a statement that customers who made purchases after Nov. 3 would get their money back.

McClain added that his firm, with the blessing of creditors, also is trying to give “at least partial satisfaction” to consumers who paid before Nov. 3.

Ashley Chairman Ron Wanek said representatives of the Hawaii licensee have assured Ashley that “they are taking care of all customers.”

“We are still gathering facts surrounding the closing of this store,” Wanek said. “Until this process is completed, no decision will be made concerning the operation of another Ashley Furniture HomeStore in Hawaii.”