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As we reported earlier, DSA Member company and struggling Network Marketing company, Home Interiors seems to have failed to emerge from bankruptcy after a reorganization process and is putting its assets up for sale.

Word is that executives at the firm are expected to submit bids to purchase some of its assets.

Home Interiors sells candles, artificial flowers and other home decor accessories through thousands of independent contractors.

“Parts of this thing are probably worth more than the whole,” said William Snyder, the company’s chief restructuring officer.

The new plan could mean more job losses at the company’s headquarters, he said. More than 300 people worked for Home Interiors when it filed for bankruptcy in April; the company now has 131 employees.

Under the new plan:

• Home Interiors’ business assets in the U.S., Canada and Puerto Rico will be offered as a single unit. Robin Crossman, the company’s president and chief executive, is leading a group expected to bid for only some of these assets.

• The company’s Mexican unit will be offered separately. Fabian Uribarren, president of that unit, is heading a team that is likely to purchase that entity.

•Domistyle Inc., a Dallas manufacturer and distributor of home fragrances and decor accessories that Home Interiors bought in 2002, will be offered as an independent company. Brenda Buell, Domistyle’s founder and president, is leading a team in the running to purchase Domistyle.

•The Laredo Candle unit will be offered as a separate entity, although it may be included as part of the Domistyle sale.

Mr. Snyder said Home Interiors’ largest shareholder and creditor, Highland Capital Management LP of Dallas, supports the plan. A spokesman for Highland declined to comment beyond a Home Interiors news release.

Mr. Snyder said he expects other creditors to support the plan as well.

Home Interiors was founded in 1957 by Mary Crowley; she and her son Don Carter built it into a Dallas landmark.

We will keep you up to date on this as it progresses.

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More bad news for Home Interiors & Gifts Inc. The home goods company, which has been undergoing a lot of hardship lately announced that they will have to do another round of job cutting.

Home Interiors & Gifts recently filed for Chapter 11 bankruptcy protection and hired a new executive team to help the company re-build and reorganize. Unfortunately, the process has not been as easy and smooth as they might have hoped.

Just last week the company announced that they will eliminate 83 night jobs at its Carrollton warehouse on July 31 and this week announced that an additional 24 jobs will be cut as well.

In a filing with the Texas Workforce Commission, the company said that rather than laying off night workers, they will have the opportunity to move to the day shift. For those unable to switch, they will have to start looking for new jobs by the end of July.

The company released a statement about its new reorganization attempts saying, “we anticipate that additional separations will occur; however, we do not currently know the date(s) on which these separations will occur.”

Just last month, Home Interior had to lay off over 100 workers when it closed Dallas Woodcraft Co, the direct sales company’s furniture subsidiary.

Last month, direct sales veteran, Robin Crossman, took the helm of the failing company, and hopefully this shuffling of jobs and cutting the night shifts are all part of the plan. The company has been struggling for some time and this is not the kind of news that I think they would want to hear just a month after the appointment of their new savior.

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Home Interiors & Gifts, Inc. - a Dallas based direct sales company - has named a new President and Chief Executive officer. Robin Crossman, a direct sales veteran who has spent the last two decades in management positions at several direct sales/MLM companies, will take the helm and help the company re-invent itself.

Crossman has a tough job ahead of her. Just last month, the 50 year old company filed for Chapter 11 after several years of declining sales. Crossman will work with the Board of Directors to reorganize the company and execute a new strategic marketing and sales campaign.

During the last two decades, Crossman has served in several high powered roles in the direct sales industry. For 14 years she served in an Executive Management position at Amway where she helped build some of the company’s smaller brands into profitable lines for the company. She also served as President and Chief Innovation Officer for IdeaSpere Innovations which purchased Twinlab out of bankruptcy and revitalized many of its failing brands. Most recently, Crossman served as President and COO of SUZANNE, the direct sales company she launched with Suzanne Somers. Needless to say, she has a lot of experience as a leader, and a proven track record of helping companies reestablish their brands.

Crossman is looking forward to taking over at the helm of the home good company and is confident that she can rebuild them into the company they once were. “Home Interiors & Gifts has a rich heritage and strong reputation as a direct selling company, and I’m looking forward to rolling up my sleeves and getting to work,” Crossman said. “I have deep respect for the vision and philosophy of Mary Crowley, who started this company more than 50 years ago with a strong faith-based culture, and I intend to lead Home Interiors ‘back to the future’ in a way that will honor her legacy.”

Pat Daugherty, Home Interiors Chairman of the Board expressed his confidence in their choice, “she is a proven visionary and leader with a personal, enthusiastic approach that is contagious and motivating. Robin has the perfect combination of direct selling experience, drive, creativity and leadership skills to guide the company both during reorganization and once we emerge from Chapter 11.”

While the company filed a voluntary petition for protection under Chapter11 on April 29th, the company continues operate as normal. Despite closing several subsidiaries of the company, the 100,000 Decorating Consultants and Directors across North America and Puerto Rico are optimistic that the appointment of Crossman is the first step toward the rebuilding of the company.

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The news keeps getting worse for Home Interiors & Gifts Inc. The company, which sells candles, artificial flower, artwork and other home décor items was forced to file chapter 11 Bankruptcy last week, and now the company announced that they will shutter two subsidiaries at the end of June. The closing of the two facilities will lead to over 200 people losing their jobs.

The two subsidiaries closing are, Dallas Woodcraft Co and Laredo Candle Co. A spokesman for the Laredo Candle Co said they are actively looking for a buyer for the candle company to save it.

Home Interiors and Gifts was founded 51 years ago in 1957 by Mary Crowley. Mary and her son, Don Carter built the business by primarily selling home goods to those will a small budget. In 1988 the $500 million dollar company was sold to some financial big wigs in Dallas. Among them, finance firm Hicks, Muse, Tate &Furst, Inc and now known as Highland Capital Management.

Rather than maintaining the core values instilled by Mary Crowley and her son, to sell home decorating items at discounted prices to those who are on a budget, the new finance companies had a plan to sell more upscale products to a higher clientele. The plan failed. Another factor that has led to the gradual decline has been the advent of discount mega stores like Target, Wal-Mart and Kmart. That coupled with the shift from what Home Interiors original goal was, which was to sell discounted home goods to those on a budget, has led to the company’s decline.

Today the company still employs 500 people in its Carrollton Headquarters, half the number it had 2 years ago. Employees and independent “decorating consultant” now fear losing their jobs. Currently there are 70,000 distributors working for the company.

This company is just another in a long list of companies that are having a hard time in this tough economy. Other big companies such as Sharper Image and Linen N’ Things, two large retail stores, are having a hard time keeping up with discount sellers like the Wal-Marts that cater to people on a budget, which these days is almost everyone. The shift from budget home goods to upscale products might ultimately be this company’s downfall.

While they are not in the dead pool just yet, there are very few direct selling companies that emerge from Chapter 11.

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