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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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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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