Bankrupt Kids Quarters Takes on a New Identity

Online store gets a new name but customers still don't have their furniture

By Lisa Wade McCormick
ConsumerAffairs.com

March 23, 2008

Kids Quarters • Manufacturer Comes to the Rescue of One Kids Quarters Customer • Little Satisfaction for Kids Quarters Customers • Bankrupt Kids Quarters Takes on a New Identity • Online Furniture Purchase Goes Sour • Consumer Complaints --- • More about furniture ...

Complaints continue to rise nationwide about a now-defunct furniture store in Florida that took consumers' money and failed to deliver the promised merchandise.

Earlier this month, ConsumerAffairs.com told you about problems with the company, Kids Quarters, Inc. Since then, we've heard from scores of consumers across the country who haven't received their promised – and paid for – furniture.

So have other consumer protection agencies.

Some consumers paid with debit cards and are now out thousands of dollars.

We've also learned the company's president opened a new business weeks before he closed Kids Quarters' three stores in Florida and its online division.

A former employee also told us that Kids Quarters is now filing for bankruptcy.

Monthly payments

"I tried to send in something every month," says Maxine of Palmyra, Virginia. Her now 12-year-old daughter also did extra chores to help pay for her "dream bedroom set."

Maxine thought her hard work finally paid off in December. That's when she sent Kids Quarters the final payment on her daughter's $2,952.79 full-size loft bed.

"We were so anticipating this bed," Maxine says, adding she found the bed on Kids Quarters' Web site. "My daughter kept a picture of this set on her wall for one year and six months, patiently -- and at times toward the end -- impatiently waiting for this final payment and delivery.

"We painted her room and were planning a party for her new bedroom makeover."

Maxine called Kids Quarters in late December and asked about the bed's delivery date.

The company told her she had to wait another 12 weeks. "But I kept calling because I thought it had to be sooner than 12 weeks. I called at the end of January and they said 'look, it hasn't been 12 weeks.' "

Maxine called again on February 22, 2008. The news from that one call dashed her daughter's dream – and Maxine's bank account.

"The company told us we would not get our order. They told me they were going bankrupt. They said I should tell my credit card company that I was scammed and get them to reimburse my money."

Maxine, however, didn't pay for the bed with a credit card. She used her debit card, which offers no protection when companies fail to deliver the merchandise promised.

"I know I'm not going to get my money back," Maxine says. "My daughter and I are heartbroken. She's still sleeping on a couple of twin mattresses on the floor. But she's a trooper. I'm irate over this."

Outraged

Megan S. of Winter Haven, Florida, is also outraged with Kids Quarters and its business practices.

Last July, her sister ordered a crib for her from the company. Her sister paid the full $500 in advance -- with her debit card -- and was promised delivery in eight weeks.

But all Megan received from Kids Quarters were empty excuses.

"In the middle of September, when the crib should have been in, the store said the factory burnt down, it would be a few more months, and we would get a call when the crib was in," she says. "We decided to wait, since the baby was due in November.

"There were more excuses every time we talked to them," Megan adds. "The manager of the store in Tampa, Bob, kept giving us later delivery dates. It's awful. My sister has yet to receive her refund, which was promised to be returned to her at the beginning of March."

Megan's sister has since purchased the crib from a different store – and paid another $500.

"So, we ended up paying $1,000 for a crib that cost $500. I feel like they have taken advantage of us."

Meredith H. of Atlanta, Georgia, echoes those concerns. She ordered twin bunk beds from Kids Quarters, Inc. last November and paid the full $1,265.70 in advance – on her credit card.

The company promised to deliver the beds in eight to 10 weeks.

"I started calling and e-mailing the company around the time I was supposed to receive the beds," Meredith says. "And the company -- when they actually returned my calls and e-mails -- said the beds were on back order. They said they would notify me when they could start shipping them again."

But Meredith never heard back from Kids Quarters.

"So I called a week or two later, and they said it would be another week or two until they could ship them. Finally, I called two weeks ago and they said I should have my beds by the end of the following week at the latest."

The beds, however, never arrived.

"I had had a sinking feeling in my gut throughout this whole ordeal," Meredith says, "but I was hoping I was wrong."

Meredith is also worried about getting a refund – even though she paid with a credit card.

"I have contacted my credit card company, but am not sure if I will get my money back, as it is past the 60 day time limit on disputing charges, " she says. "I am not counting on it."

More complaints

Kids Quarters also took money from a ConsumerAffairs.com reporter last August and never delivered the loft bed promised. Our reporter paid with a credit card and recently ordered the bed directly from the manufacturer.

During our investigation, we've learned other consumer protection agencies have received complaints about Kids Quarters and failure to deliver promised merchandise.

The Better Business Bureau of Central Florida has received -- as of last Thursday -- 123 complaints about Kids Quarters. The majority of those complaints are about delivery problems.

We've also learned the Florida Attorney General's Office has received nearly 20 complaints about Kids Quarters, Inc.

New name?

Consumers who've contacted us in recent days are now worried that Kids Quarters has opened a new business – under a different name.

Those concerns surfaced when many found a Web site called Kids Furnishings.com. The Web site is similar to Kids Quarters'. It sells the same furniture. And the company is based in Florida.

Records with the WHOIS database reveal Kids Quarters' president, Antonio Sola, registered the kidsfurnishings.com domain name – and updated it on December 14, 2008.

Sola is also listed as the administrative contact for that Web site.

ConsumerAffairs.com also discovered that Sola opened a new business in December – shortly before he closed Kids Quarters and during a time when he couldn't fill customers' orders.

Records with the Florida Secretary of State's office reveal that Sola incorporated a business called Kids Furnishings.com, Inc. on December 4, 2007. He filed the paperwork for that new business on December 6, 2007. Sola is listed as president and secretary of Kids Furnishings.com.

Consumers like Michael P. of Denton, Texas, wondered if this new online company was simply a front for Kids Quarters, Inc.

"I found out about Kids Furnishings.com and called them," says Michael, who never received the loft bed he ordered in December from Kids Quarters. "I hit "O" and the message said I was going to the voice mail of Antonio Sola."

Sola didn't answer and Michael was transferred to another Kids Furnishings.com employee.

"I asked that person about Sola and they said no one there had that name. I called back later to verify that I had heard Sola's name correctly. I had."

Michael says he doesn't want this new company to dupe other consumers.

"I paid $700 for our bed, but I used my credit card and I'm protected," he says. "To me, it's not about the money. It's the principle. I don't want anyone else getting ripped off and I don't want these jokers to get away with this."

Company's response

ConsumerAffairs.com also contacted Kids Furnishings.com – first as a customer and then as a reporter.

When we called as a customer, a man who identified himself as Robert Dalbey said he was the owner. He also told us that he didn't know anything about Kid Quarters, Inc.

When we called back as a reporter, Dalbey changed his story. He acknowledged that he knew a great deal about Kids Quarters – he managed the company's store in Tampa.

He also told us that he bought the Kids Furnishings.com Web site and its "intellectual property" from Sola earlier this month.

Records filed on March 4, 2008, with the Florida Secretary of State's office reveal a change in officers for Kids Furnishings.com. The name of the company's president switched from Antonio Sola to Robert Dalbey.

"Mr. Sola has no connection to me now," Dalbey said. "I rent some warehouse space from him, but that ends in April."

Why does Sola still have voice mail on the company's phone system?

"I didn't realize that it was there until the gentleman called," Dalbey said. "When we bought this business, he (Sola) had a phone system already set up. I went and changed all the extensions. But there was stuff like this that I didn't realize was still there."

Dalbey also changed the Whois registration. It now shows the Kids Furnishings.com Web site is registered to him – not Sola.

Kids Furnishings.com, Dalbey said, will also operate much differently than Kids Quarters, Inc.

"We are only an online business. We're going to keep things on a much smaller scale. We also won't charge customers' credit cards until their furniture leaves the factory. And we'll make sure everything in stock before we place an order."

Dalbey added: "I learned a lot of how 'not-to-do things' working for Kids Quarters."

What went wrong with Kids Quarters? Why couldn't the company fill customers' order? And will the company help customers get their promised furniture – or their money back?

We've tried to get Antonio Sola -- or the company's general manger, Monique Sola -- to answer those and other questions. But they have never returned our calls or e-mail messages.

We posed those same questions to Dalbey.

He said customers who paid with credit cards should be able to get refunds from their charge card companies. But he doubts customers who paid with debit cards will get refunds.

Kids Quarters, Inc., he said, is filing for bankruptcy.

"Right before we closed, he (Sola) faxed over a sign to put on our door that said the company was filing Chapter 7 bankruptcy."

ConsumerAffairs.com learned at least one manufacturer – Berg – has agreed to honor Kids Quarters' contracts. The company will make and ship the furniture for the same price quoted by Kids Quarters, Inc.

Dalbey said his company would also try to honor Kids Quarters' contracts. But he can't help customers like Maxine, who lost money because they paid with their debit cards.

"I can't afford to do that," Dalbey said. "I don't have her (Maxine's) $2,900."

Dalbey blamed the ailing economy for Kids Quarters' financial problems – and its ultimate closing. "We weren't getting in the sales like we did one to three years ago. But we still had to pay vendors, make payroll, and cover rent. The rent at our Tampa store was $50,000 a month.

"This was just like any other business," Dalbey said. "Once you start spending more than you collect, you get into trouble. And he (Sola) didn't have the sales to cover his expenses."

If that's the case, why did Kids Quarters continue to take orders?

"I would think it's because they kept thinking that things were going to come around…to turn around. That didn't happen."

Sola apparently opened Kids Furnishings.com to generate more sales, Dalbey said.

"Maybe he wanted to have another outlet to increase sales. But I can understand how it might appear. And I'm not defending what he did."

Kids Quarters, he said, did a poor job communicating with its customers – especially those who ordered furniture online.

"I thought the customer service was lacking in its online business," he said, adding the Internet orders were handled by Kids Quarters' Orlando office. "And I told them that a few times. Like I said, I've learned a lot of what not to do from my experience working at Kids Quarters."

Dalbey, however, denied reports that Sola led a lavish lifestyle -- even when his business was failing and he couldn't fill customers' orders.

"I don't think he lead an extravagant lifestyle," Dalbey said. "He never struck me as a high-roller. He drove a Cadillac, but I don't know how old it was. And when he came to our store, he worked."

When asked why consumers should trust him -- and his new business -- Dalbey said: "We're doing thing a lot differently than Kids Quarters ever did. It's a different company - it's my company and I'm not Antonio Sola."

Still no loft

Back in Virginia, Maxine isn't sure how -- of if -- she'll ever get her daughter's loft bed.

She contacted Berg, the manufacturer of the bed. But that company wants $2,900 in advance – money she doesn't have.

Whatever she decides, Maxine will never use her debit card again to make a major purchase. "I've learned a costly lesson," she says.

In the meantime, Maxine continues to warn consumers about Kid Quarters and it tactics.

"I'm not rich. I had to work for a long time to afford this product. And I don't want to see this happen to anyone else."

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Share		Follow us on Twitter.

Back to the top |