The Houston Chronicle reports on yesterday’s Garden Ridge Corporation chapter 11 filing.
The first major motion in the Garden Ridge case–i.e., it’s Motion for Approval of Post-Petition Financing (in other words, a “Judge, let us borrow money so that we can stay alive” motion)–provides Garden Ridge management’s analysis of what caused the company’s financial problems. Earlier today, the Court approved Garden Ridge’s motion on an interim basis in this order.

In a surprise move today, Houston retailer Garden Ridge Corporation filed a chapter 11 case in the Bankruptcy Court in Delaware. The initial docket in the case is here.
Garden Ridge is one of those companies that is difficult to figure out. Rapid expansion, high margins, and good locations (for example, generally near WalMart Super Centers). On the other hand, there is literally nothing in the stores that interests me in the slightest, although my wife would point out that that is meaningless because I hate to shop. The filing in Delaware indicates to me that the company’s financing entities may be a driving force behind this move. Stay tuned.

Today is the first day on the job for new Houston Bankruptcy Judge, Marvin Isgur. Marvin replaces longtime Bankruptcy Judge Manuel Leal, who is retiring.
Marvin has an interesting background. A lifelong Houstonian, Marvin is a graduate of South Houston High School, the University of Houston (B.A.), Stanford Univeristy Business School (M.B.A.), and the University of Houston Law Center (J.D.). Before becoming an attorney, Marvin was a successful businessman in Houston in the real estate development and management business with his longtime mentor and uncle, the late Eugene Winograd, M.D. As Marvin managed Dr. Winograd’s real estate empire through the prolonged depression in the Houston real estate market during the mid-1980’s, he became interested in reorganization and insolvency law and decided to attend the University of Houston while running a multi-million real estate business. Not surprising to anyone who knows Marvin, he finished at the top of his law school class while continuing to manage Dr. Winograd’s real estate business.
Before becoming an attorney, Marvin was a favorite business client of mine. After becoming an attorney, he was an outstanding partner in my downtown Houston law firm for ten years before I established my solo practice in 2000 and Marvin joined the Houston firm of Floyd, Isgur, Rios & Wahrlich, P.C. Most of all, Marvin is one of my best friends.
Marvin has an exceptional mind and an unusual depth of business and legal experience. Those qualities will combine with his deep sense of humanity and wonderful sense of humor to make Marvin an outstanding jurist. Marvin’s addition to the other Houston Bankruptcy judges–William Greendyke, Karen Brown, Letitia Clark, and Wesley Steen–makes Houston’s Bankruptcy bench one of the strongest in the nation.
Judge Isgur’s Court homepage is already available. Best of luck in your new job, Judge Marvin!