The owner of Danica furniture stores has...

The owner of Danica furniture stores has filed for protection under Chapter 11 of the U.S. Bankruptcy Code and plans to close one-third of its 80 stores nationwide. Scandinavian Design Inc., a privately held firm based in Evanston, Ill., said it plans to keep its five Los Angeles area stores open. The chain, which specializes in imported Scandinavian furniture, says the dollar’s decline against Scandinavian currencies forced it to raise prices by 30% to 35%, triggering a drop in sales. That happened as the chain completed a costly nationwide expansion and was hurt by the poor performance of outlets in economically troubled Texas.