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Fortunoff seeking approval for asset sale

By Furniture Today Staff -- Furniture Today, February 16, 2009

NEW YORK — NEW YORK — Less than a week after seeking Chapter 11 bankruptcy protection, home furnishings and jewelry retailer Fortunoff's asked a U.S. Bankruptcy Court judge last week to swiftly approve an auction and sale of virtually all of its assets.

The retailer 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.

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 before the bankruptcy filing.

For the nine months ended Nov. 30, the company had sales of $260.1 million and an operating loss of $42.2 million.

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Fortunoff's asks bankruptcy court to approve auction of assets

Feb 9, 2009

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