UPDATE 3-Gracious Home files bankruptcy amid NYC job losses

* Gracious Home could emerge from Chapter 11 this year

* Joins other retailers to file since credit tightened

* Founded in 1963 by immigrants from Cuba (Adds interview with adviser, timing of bankruptcy exit)

By Jonathan Stempel

NEW YORK, Aug 13 (Reuters) - Gracious Home, the retailer of bed, bath, kitchen and other home furnishings, filed for bankruptcy protection on Friday, after sales fell and losses mounted as more consumers lost their jobs in a slumping economy.

The company, which operates six stores in Manhattan, joins a growing list of U.S. retailers that have sought bankruptcy protection since 2007 amid tight credit conditions and a recession such as Circuit City, Eddie Bauer, Filene's Basement, Fortunoff, Linens 'n Things, Mervyn's and The Sharper Image.

Gracious Home was founded in 1963 by Cuban immigrants Natan Wekselbaum, who remains chairman, and his brother, according to the company website.

In a filing with the U.S. bankruptcy court in Manhattan, President Jordan Smilowitz said Gracious Home has had "substantial" losses for several years, with revenue declining to an estimated $58 million this year from $60 million in 2009 and $70.4 million in 2008.

He also said Gracious Home struggled because a net loss of 131,000 jobs in New York City since August 2008 hit the financial and legal industries particularly hard.

"These are the jobs held by many of the debtors' customers," he said.

The company said it plans to use the bankruptcy process to restructure its store lease obligations, and obtain new capital from Meridian Acquisition Ventures LLC, pending a possible court-supervised auction for better proposals.

It also plans to obtain financing from an affiliate of NewAlliance Bancshares Inc NAL.N to keep operating while in Chapter 11.

Robert Pressman, a former Barney's Inc chief executive whose firm Triton Equity Partners LLC advised Gracious Home on real estate matters, in an interview said Gracious Home plans to file its reorganization plan next week, and could emerge from bankruptcy this year.

Thomas Shull, a Meridian principal and restructuring specialist who also once ran Barney's, would remain Gracious Home's chief executive and Wekselbaum would remain chairman, the company said.

According to its bankruptcy petition, Gracious Home has $10 million to $50 million of both assets and liabilities, and 1,000 to 5,000 creditors. The filing includes The Weck Corp, which does business as Gracious Home, and three affiliates.

The case is In re: The Weck Corp, U.S. Bankruptcy Court, Southern District of New York, No. 10-14349. (Reporting by Jonathan Stempel in New York; Editing by Richard Chang, Bernard Orr and Gunna Dickson)