FOR IMMEDIATE RELEASE:

September 5, 2002

FOR FURTHER INFORMATION CONTACT:

Genene Morris (973)504-6327

NEWARK - A Monmouth County Superior Court judge has ordered the principals of furniture retailer Sofa Showcase, Inc., to appear in court on September 13 to answer allegations by the State that the company's retail stores violated consumer protection laws by, among other things, selling defective merchandise and failing to provide consumers with items they ordered, Attorney General David Samson and Consumer Affairs Director Reni Erdos announced today.

In addition to ordering Joseph Dweck, Sofa Showcase's director and chief executive officer and Shaya Waldman, Sofa Showcase's chief operating officer to appear in court, Monmouth County Superior Court Judge William P. Gilroy also imposed temporary restraints against the defendants. The temporary restraint order bars the defendants from disposing of any assets which may ultimately be used for consumer restitution; disposing of any assets obtained from consumers and collecting or receiving any payments from consumers in connection with the operation of any of their businesses.

Also named as defendants are Sofa Showcase, Inc., which had retail stores in East Brunswick, Green Brook, and Eatontown; Sofa Showcase Edison, Inc.; Sofa Showcase Freehold, Inc.; and Sofa Showcase Union, Inc. Sofa Showcase, Inc., filed for Chapter 11 bankruptcy protection in July.

The State's three-count complaint alleges that the defendants violated the State's Consumer Fraud Act and furniture regulations while engaged in the sale of furniture to consumers. Specifically, the complaint alleges that the defendants:

• misrepresented when merchandise would be delivered to consumers and engaged in repeated false promises and misrepresentations as to the expected delivery of merchandise.
  
  
• sold defective merchandise.
  
  
• failed to deliver the ordered merchandise by or on the promised delivery date.
  
  
• failed to fill in on the sales document the date on which delivery of the ordered merchandise was promised or the length of time agreed upon by the buyer and seller delivery of the ordered merchandise.
  
  
• improperly billed consumers by failing to return deposits, charging consumers for merchandise on orders they canceled prior to delivery and charging consumers for merchandise that did not conform with what the consumer ordered and that was rejected upon delivery.
  
  
• improperly denied consumers the opportunity to exchange or obtain a refund for purchased merchandise.
  
  
• charged improper restocking or cancellation fees.
  
  
• failed to respond to consumer complaints and inquiries.

Consumer Affairs' Consumer Service Center has received more than 250 complaints against Sofa Showcase since 2001. The vast majority of those complaints were received in recent months.

"Through what we allege to be a pattern of deception and misrepresentation, the defendants took consumers' money and misled them into believing that the furniture they ordered for their homes would be delivered to them by a certain date," Attorney General Samson said. "In fact, our complaint alleges, in some instances the furniture never arrived or when it did it was defective or not what the consumer ordered."

"Consumers trusted the defendants to fulfill the promises they made and to meet the consumers' expectations," Erdos said. "Unfortunately, we allege, the defendants failed to adhere to New Jersey's consumer protection laws and caused their customers to suffer financial harm. These are the reasons why we have taken this action."

The State's complaint seeks an order permanently barring the defendants from violating the State's Consumer Fraud Act, appointing a receiver, freezing the defendants' assets and requiring the defendants to pay restitution.

Deputy Attorney General Marisol Perez of the Division of Law is handling this matter for the State.