Puritan Furniture Buyers Find Showroom Locked Amid Financial Collapse-June 22, 1984

Attorney General Francis X. Bellotti Moves To Protect Consumer Deposits As Distress Sales Cease

Some drove from towns miles away after hearing reports the store off Nahatan Street would close sooner than expected.

Meanwhile, the attorney general’s office said yesterday 2,000 to 3,000 people who have deposited more than $400,000 with Puritan Furniture since mid-April will get their money back. One of the customers who went to the store, Dale Pichette of Attleboro, said she was buying $1,394 worth of furniture on a layaway plan. “Now they’re going to keep my money and I’m not going to get my furniture, especially if they declare bankruptcy,” she said.

Bill MacLennan of Braintree and Patti Morse of South Weymouth, who plan to marry in two weeks, said they have paid $1,058 on a $2,000 layaway plan. “Ever since we read in the paper they were going bankrupt, we’ve been calling,” Morse said. MacLennan said Puritan Furniture had promised delivery yesterday if a final cash-on-delivery payment was made. Richard Gangi of Brockton said he had put $300 down on a living room set. “It’s not all the money in the world, but 300 bucks is 300 bucks,” he said.

Two security guards were posted at the doors. At one point, a guard said the store would reopen today. Later, the guard posted a sign saying “store is closed for reorganization until further notice.” Later, the words “until further notice” were taped over. A well-dressed man with a briefcase arrived at the store in a four-door black Lincoln. Before entering the building, he said, “I can tell you honestly the company will not be open for sales tomorrow morning — no sales, no pickups or deliveries.”

Attorney General Francis X. Bellotti said he, the furniture store, and its major creditors have taken steps to set aside the $400,000 in deposits by having the money placed in a separate trust account. The deposit protection plan has been approved by Superior Court Judge James Lynch. Puritan Furniture yesterday stopped selling and shipping orders, the attorney general’s office said.

“Customers who left deposits since mid-April should know their deposits have been segregated in a separate account that can’t be touched without the signature of the president of Puritan (Sidney Adelstein) or by the attorney general’s office,” said Dwight Golann, chief of the consumer protection division of Bellotti’s office. Golann said the company has assured his office there is enough money in the account to cover the deposits. Puritan Furniture has outlets in Norwood, Stoneham, and Manchester, N.H. Creditors apparently have shut the company down, Golann said.

Two weeks ago, Bellotti sued Puritan Furniture, Adelstein, and a Tennessee liquidation firm, Furniture Distributors Inc., alleging that Puritan Furniture was in financial difficulty and that it had not adequately protected customer deposits. The attorney general’s office and Puritan Furniture agreed to segregate customer deposits taken on all furniture orders since April 13, 1984, when Puritan Furniture began its first distress sale. Bellotti has obtained the agreement of Puritan’s largest secured creditors to relinquish their legal rights to those deposits. That money will be returned to consumers who made deposits but have not received furniture they ordered.

Golann and Assistant Attorney General Diane Tsoulas, however, cautioned that Puritan Furniture also took deposits from customers who ordered furniture in early 1984 and did not place those funds in escrow. Bellotti’s office is investigating those claims, which are believed to total $130,000. “Puritan has told us that they also have enough money to cover the $130,000 and we will be checking that out. But we cannot offer any guarantees,” Golann said.

Puritan Furniture had been selling stock to satisfy creditors, but it had not been expected to close until later this month. The company had been experiencing financial difficulties for a year. It reportedly had $4.5 million in assets and liabilities of $5.8 million.

Puritan Furniture Buyers Find Showroom Locked Amid Financial Collapse-This Day In Norwood History-June 22, 1984

Attorney General Francis X. Bellotti Moves To Protect Consumer Deposits As Distress Sales Cease

Dozens of customers looking for refunds or furniture they had bought went to the financially troubled Puritan Furniture showroom yesterday, only to find the doors locked. Some drove from towns miles away after hearing reports the store off Nahatan Street would close sooner than expected.

Meanwhile, the attorney general’s office said yesterday 2,000 to 3,000 people who have deposited more than $400,000 with Puritan Furniture since mid-April will get their money back. One of the customers who went to the store, Dale Pichette of Attleboro, said she was buying $1,394 worth of furniture on a layaway plan. “Now they’re going to keep my money and I’m not going to get my furniture, especially if they declare bankruptcy,” she said.

Bill MacLennan of Braintree and Patti Morse of South Weymouth, who plan to marry in two weeks, said they have paid $1,058 on a $2,000 layaway plan. “Ever since we read in the paper they were going bankrupt, we’ve been calling,” Morse said. MacLennan said Puritan Furniture had promised delivery yesterday if a final cash-on-delivery payment was made. Richard Gangi of Brockton said he had put $300 down on a living room set. “It’s not all the money in the world, but 300 bucks is 300 bucks,” he said.

Two security guards were posted at the doors. At one point, a guard said the store would reopen today. Later, the guard posted a sign saying “store is closed for reorganization until further notice.” Later, the words “until further notice” were taped over. A well-dressed man with a briefcase arrived at the store in a four-door black Lincoln. Before entering the building, he said, “I can tell you honestly the company will not be open for sales tomorrow morning — no sales, no pickups or deliveries.”

Attorney General Francis X. Bellotti said he, the furniture store, and its major creditors have taken steps to set aside the $400,000 in deposits by having the money placed in a separate trust account. The deposit protection plan has been approved by Superior Court Judge James Lynch. Puritan Furniture yesterday stopped selling and shipping orders, the attorney general’s office said.

“Customers who left deposits since mid-April should know their deposits have been segregated in a separate account that can’t be touched without the signature of the president of Puritan (Sidney Adelstein) or by the attorney general’s office,” said Dwight Golann, chief of the consumer protection division of Bellotti’s office. Golann said the company has assured his office there is enough money in the account to cover the deposits. Puritan Furniture has outlets in Norwood, Stoneham, and Manchester, N.H. Creditors apparently have shut the company down, Golann said.

Two weeks ago, Bellotti sued Puritan Furniture, Adelstein, and a Tennessee liquidation firm, Furniture Distributors Inc., alleging that Puritan Furniture was in financial difficulty and that it had not adequately protected customer deposits. The attorney general’s office and Puritan Furniture agreed to segregate customer deposits taken on all furniture orders since April 13, 1984, when Puritan Furniture began its first distress sale. Bellotti has obtained the agreement of Puritan’s largest secured creditors to relinquish their legal rights to those deposits. That money will be returned to consumers who made deposits but have not received furniture they ordered.

Golann and Assistant Attorney General Diane Tsoulas, however, cautioned that Puritan Furniture also took deposits from customers who ordered furniture in early 1984 and did not place those funds in escrow. Bellotti’s office is investigating those claims, which are believed to total $130,000. “Puritan has told us that they also have enough money to cover the $130,000 and we will be checking that out. But we cannot offer any guarantees,” Golann said.

Puritan Furniture had been selling stock to satisfy creditors, but it had not been expected to close until later this month. The company had been experiencing financial difficulties for a year. It reportedly had $4.5 million in assets and liabilities of $5.8 million.

Archival Note: This article has been dynamically reconstructed from the original public record print archives of the Patriot Ledger

Archival Note: This article has been dynamically reconstructed from the original public record print archives of the Norwood Messenger

Archival Note: This article has been dynamically reconstructed from the original public record print archives of the Boston Globe