Kepple’s Carpet Inc. has initiated Chapter 11 proceedings. The West Berlin, New Jersey-based firm has been providing a range of flooring products for more than 30 years.
Case records show the company faces a financial imbalance and a large number of unsecured creditor claims. The company is seeking to continue operations while restructuring under court supervision.
Kepple’s Carpet Inc. Enters Bankruptcy
The company submitted its Chapter 11 petition on July 22, 2026. Case records classify it as a small business debtor.
The recent filing comes as a range of independent flooring retail companies keep facing operational troubles.
According to Floor Focus, the U.S. flooring industry experienced continued market pressure in 2025, marking the third consecutive challenging year for the sector. The report a decline of 2.5% to 4.5%. It also cited Market Insights, showing that 70 independent flooring retailer firms shuttered during the year.
The report added that tariffs increased costs for imported flooring products and raw materials. This made several manufacturers to announce multiple price hikes. An increase of approximately 5% to 35% on some flooring items added to the cost pressures for retail companies and the flooring supply chain.
About the Company
The company operates as a flooring retailer and installation provider. Since 1991, it has offered a range of flooring products. These include carpet, laminate, luxury vinyl, hardwood, area rugs, waterproof flooring, and tile.
The website shows that the family-owned company also provides installation, design assistance, in-home consultations, and financing options. Its offerings span across South Jersey for residential and commercial customers. Operating from its showroom in Berlin Township, the company serves Medford, Voorhees, Cherry Hill, and Marlton.
Case Related Details
Filing records on PACER have shown that the company added a list of creditors with the largest unsecured claims in its petition. Some of the creditors are American Express, Comcast Business, European Coffee Classics, and Boyle & Valenti.
The records hint that the company has funds, which will be provided to the unsecured creditors.
The list of equity security holders mentions company president Douglas Kepple as the sole owner of the company.
A summary of the Chapter 11 petition is shared here:
- Filing Date: July 22, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the District of New Jersey
- Type of Filing: Active, Voluntary Petition
- Chapter: 11, Subchapter V
- Case Number: 26-18309
- Estimated Assets: Between $0 and $50,000
- Estimated Liabilities: Between $100,001 and $500,000
- Estimated Creditors: 1-49
- Reason for Filing: Reorganize finances under court supervision
The recent filing marks a crucial step in the company’s efforts to readjust finances. As the case progresses, upcoming filings are expected to provide more details on its restructuring plans.
