The filings were made in the U.S. Bankruptcy Court in Santa Ana, Calif. The company intends to file a motion requesting Bankruptcy Court authorization to liquidate and cease operating all 42 of its House2Home stores.

Sales for the company's 42 House2Home stores fell severely following the tragedy of the Sept. 11 terrorist attacks.

The company has reached an agreement with its bank group, led by Fleet Retail Finance, with respect to a cash collateral stipulation. The anticipated stipulation, which will be subject to Bankruptcy Court approval, will enable the company to retain a predetermined portion of cash from anticipated store liquidation sales. The company expects to use these funds to help fulfill obligations associated with all business operations, including payments to employees, suppliers, vendors and other business partners for goods and services provided on or after the Chapter 11 filing date.

Once commenced, liquidation of inventory at the 42 stores is estimated to take approximately 13 weeks.

According to the company, no viable strategic transaction has materialized to date that would permit the company to avoid liquidation. The company will retain some portion of its employees through the completion of the liquidation process.