A federal bankruptcy judge today approved a request by National Home Centers to hire a consultant to help it stage "store closing sales" at its branches in Bentonville, Clarksville, and Little Rock, Ark. The dealer also sought today to have a lease canceled on property it was renting, and it has reported it recorded a $470,740 loss in December, its first month under Chapter 11.

The sales were to take place between Jan. 18 and March 15, according to an amended agreement between National Home Centers and the Great American Group LLC that was filed today in U.S. Bankruptcy Court in Fayetteville, Ark.

Springdale, Ark.-based National Home Centers--the No. 26 dealer on last year's ProSales 100, with $144.7 million in revenue in 2008--filed on Dec. 9 for protection from creditors under Chapter 11 of the federal bankruptcy law. CEO and company founder Dwain Newman told an Arkansas business journal that National Home Centers had to file because it was having trouble with its lender, CIT Group Inc., which itself was just emerging from Chapter 11. (Story)

With the planned store sales, National Home Centers will operate five locations compared to the nine locations it operated as of June 2009. It had closed a branch in Chenal Park, Ark., last fall.

In its initial filings, National Home Centers said it owes its 20 largest unsecured creditors $5.1 million. Top creditors include Guardian, Boise, BlueLinx, Orgill, Krestmark, and Weather Shield. Late last month, National Home Centers said in its first operating report that it had $6.9 million in gross sales during December, a gross profit of $2 million, total operating expenses of $2 million, other expenses amounting to nearly $500,000, and net total expenses of $2.5 million. That created a net loss for the month of $470,740.

The company also said that $1.2 million of its $14 million in accounts receivable were at least 90 days overdue. That's about 8.8% of its total ARs, which is relatively low compared with many other dealers that have entered Chapter 11 in the past year.