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Limited Stores Company Chapter 11 Petition Filed

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Privately-held Limited Stores Company (f/k/a Mod Times Fashion Group) and two affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 17-10124. The teen clothing and accessories retailer is represented by Domenic E. Pacitti of Klehr Harrison Harvey Branzburg.

The Company explains, “Despite years of popularity, the Debtors, like many other retailers, recently faced significant operational challenges – including declining mall traffic and lower-than-projected sales – resulting in a precipitous drop in EBITDA over the course of the last several years through 2016….[I]n December 2016, with no new inventory arriving and a fixed liquidity runway, the Debtors began an orderly and efficient liquidation process focused on the twin goals of winding down their brick and mortar business and selling their Intellectual Property and related assets while still entertaining any interest expressed in the remaining brick and mortar operations.”

Concurrent with its Chapter 11 petition, the Company filed a motion for an order approving bid protections and an asset purchase agreement with purchaser Limited IP Acquisition for a chase purchase price of $25.75 million and the assumption of the Debtors’ obligations under the executor contracts. According to documents filed with the Court, “Funds will be available for distribution to creditors.” Limited Stores Company’s Chapter 11 petition indicates total assets of $10 to 50 million.

Read more retail bankruptcy news.

The post Limited Stores Company Chapter 11 Petition Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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