Since it has taken a positive outlook, Klaussner products will be added to Jennifer Furniture stores in the Northeast, followed by a full retail launch scheduled for November.

[9] The year prior, the company closed 20 stores across the country, including locations in Missouri, Kansas, Connecticut, Pennsylvania, California, Massachusetts, Indiana, Florida, Michigan, and New York.

On July 29, 2004, New York Attorney General Eliot Spitzer announced a consent order and judgment that would significantly reform the company's sales practices and provide restitution to consumers.

The judgment also requires the company to make restitution to consumers for its failure to replace or repair defective goods.

[13] Across the U.S. the company has had complaints for deceptive sales practices, delivery problems, not honoring its warranties and bait-and-switch techniques.

The large and unsecured creditors included Haining Mengnu; Ashley, with a $1.4 million claim, Klaussner, and former manufacturer Stratford/Caye.

[10] Upon emergence from Chapter 11 in February 2011 the Chinese supplier and creditor Haining Mengnu Group received about 90% of the company's new stock.

The new management team included CEO Gebing (Morris) Zou, while Mr. Abada continued as president.