Prizant's Customers On The Carpet

If you live in the Pittsburgh area you have probably heard the commercials "Prizant's Presents," well no longer.

"It all started end of May, beginning of June [2007]. Our orders started coming in very slowly," said former Prizant's saleswoman Becky Sherry.

That's because the company had lost its credit line with flooring manufacturers. Normally, a retail business receives its inventory, then pays a bill at the end of the month. But if a business stops paying bills, suppliers require upfront payment via cash or certified checks -- something Prizant's apparently was unable to do. Reports the Post-Gazette.

According to the report it would cost an estimated $200,000 to $400,000 to reimburse the 200 to 300 people who made deposits on their flooring but never received the product or never got their money back.

Molyneaux flooring, another Pittsburgh chain, has offered former Prizant's customers discounts if they made a deposit but never received carpeting, so long as they have proof such as a canceled check or deposit receipt. That offer expires Jan. 15, said owner Pat Molyneaux.

But those discounts, up to one-third of the full Prizant's order, still won't satisfy the customers who paid more than one-third; these customers want to know Prizant's next move. (Neither Prizant's nor Sweetwater Investors has filed for federal bankruptcy protection, according to court filings, and it's unclear if they intend to do so. )

Investors in this mess include Richard Hvizdak. Over the years, Mr. Hvizdak has counted among his holdings a hotel, the Old Stonewall Golf Club, a Shakespearean pub and restaurant, an aviation company, a title search company called National Real Estate Information Services, and most recently an antique and oriental rug warehouse in Pittsburgh's West End, called "Artifacts."

Also included are Rob Lang and Mark Scioscia, principals of Sweetwater Investors, which bought the flooring chain in 2006 from founder Samuel Prizant. Mr. Scioscia is on the Quaker Valley school board, and serves as the board treasurer.

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