Fortunoff's asks bankruptcy court to approve auction of assets
Retailer seeking to get bids by Feb. 16
Furniture Today Staff -- Furniture Today, February 9, 2009
NEW YORK — Less than a week after seeking Chapter 11 bankruptcy protection, home furnishings and jewelry retailer Fortunoff's has asked a U.S. Bankruptcy Court judge to swiftly approve an auction and sale of virtually all of its assets.
The retailer has asked the court to require potential buyers to submit bids by Feb. 16 and conduct an auction on Feb. 19.
Following the auction, the retailer is asking the court to conduct a hearing to approve the sale on Feb. 23.
A so-called "stalking horse" bidder isn't listed in documents filed with the court, and Fortunoff's said it wouldn't object to the company being sold to more than one bidder. The company could be sold in its entirety as a going concern, or a separate bidder could emerge for the company's inventory, according to the court filings.
Fortunoff's said the sale needs to take place quickly because the company "is facing a severe liquidity crisis."
In court filings, the company described sales during the 2008 holiday season as "dismal," and said many vendors had tightened their credit terms in the weeks leading up to the bankruptcy filing.
For the nine months ended Nov. 30, the company had sales of $260.1 million, but recorded an operating loss of $42.2 million.
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Fortunoff seeking approval for asset sale
Feb 16, 2009
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