National furniture brand faces Chapter 7 bankruptcy, liquidation

Most Americans pretty much ignore recall notices. Even car manufacturers have to go to fairly great lengths to get people to bring their vehicles in for needed repairs.

There’s just a lot of noise when it comes to recalls and most people probably throw the items away rather than bring it back for a refund. I know, that the eye drops I regularly use for dry eye were recalled, and I only saw the notice because of what I do for a living.

Once I read the recall notice, I promptly ignored it because the dangers were minimal and I was pretty sure the packages I had were not included

In some cases, however, products, get recalled because they are dangerous. The problem is that sometimes a lot of people can get hurt before a recall notice gets issued.

When that happens, it could be devastating to the company involved and can sometimes lead to the end of that company. CVB Inc. which operates under the Malouf brand name recently had a massive recall involving 137,000 platform beds that pose a serious fall and injury risk.

The fallout from that recall may force the company into a chapter 7 bankruptcy liquidation if some of its creditors have their way.

Some CVB beds, marketed under the Lucid name (not pictured) have been recalled.

Image source: Pixabay

Why CVB's beds were recalled

CVB also operates under the Lucid brand name, which it uses under license.

“This recall involves Lucid Platform Beds with an upholstered square tufted headboard in Twin, Full, Queen, King and Cal-King sizes. They were sold in beige, black, charcoal, cobalt, pearl, and stone colors. The recalled beds have wooden support beams and wooden support legs and a white federal law label with “Made For: CVB INC, 1525 W 2960 S, LOGAN, UT 84321” printed on it,” the CSPC shared on its website in Sept. 2024.

Consumers were told that they should immediately stop using the recalled beds and contact Lucid for a free replacement bed frame. To claim their replacement, consumers must write “recalled” on the support rails of the bed with a permanent marker and send a photo of the bed, as well as a photo of the support rails on the underside of the bed or a photo of the law label, to recall@lucidmattress.com to receive the free replacement product.

“The firm has received 245 reports of the beds breaking, sagging or collapsing during use, causing 18 injuries, including contusions and bruises,” according to the CSPC.

The beds were sold at dozens of big-name digital and brink-and-mortar retailers.

Online at Amazon.com, Bed Bath & Beyond, Belk.com, Brookside, eBay, Home Depot, JC Penney, Lowes.com, Lucid, Macys, Menards, Overstock, QVC, Sears.com, Target.com, Malouf VIP, Wayfair and Walmart, and in stores nationwide from September 2019 through April 2024 for between $150 and $250

CVB faces forced Chapter 7 bankruptcy

In addition to its recall woes (or partially because of them), a bankruptcy petition has been filed against CVB Inc. The court petition was made by six suppliers, citing unpaid debts.

The sic companies filed an involuntary Chapter 7 bankruptcy petition filed in U.S. Bankruptcy Court for the District of Utah.

“Filed July 23, the petition lists six international creditors that allege CVB Inc. has failed to pay about $3.5 million in outstanding debts. According to court documents, the petitioning creditors include Duoman International Ltd., Metalway Co. Ltd., Hebei Home Fashions, Zhejiang Liuqiao Home Textile Co. Ltd., Ningbo Megafeat Bedding Co. Ltd. and Ningbo Unity International Trading Co. Ltd,” Furniture Today reported.

CVB Inc. vendors post large claims:

The largest claim, totaling more than $1.7 million, comes from Ningbo Megafeat Bedding,
Hebei Home Fashions is seeking more than $1 million.
The remaining creditors are seeking amounts ranging from about $25,000 to nearly $293,000.

An attorney for CVB Inc. told Furniture Today that the company disputes the claims made in the petition.

Lucid Mattress and multiple other CVB companies continue to operate. The company has a simple description of its reason for being.

“At Lucid, our goal is to make great sleep simple, accessible, and affordable for every stage of life. Because when sleep comes easy, so do your dreams,” it shared on its website.

An involuntary Chapter 7 petition is a legal process where creditors, instead of the debtor, initiate a bankruptcy case against the debtor in order to force the liquidation of the debtor's assets. If the court approves the involuntary bankruptcy filing, the debtor's assets are sold off, and the proceeds are used to pay off the debts owed to the creditors.