Thursday, July 21, 2011
Industry News: Decelerating
Deb Shops announced that it will file for Chapter 11 bankruptcy, and sell the women's clothing retailer to its lenders. The company said its 300-plus stores won't be affected by the filing. Under the agreement, a group of Deb Shops' senior lenders, led by Ableco Finance LLC, will acquire the company's assets through a bankruptcy auction. The deal, if it receives court approval, is expected to close in September...Borders Group is seeking court approval to liquidate its 399 stores after it failed to receive any bids that would keep the chain in operation and canceled an auction process. Liquidation sales could start within days. Borders had been seeking a new white knight bidder after a $215 million bid dissolved late last week. Hilco Merchant Resources and Gordon Brothers Group will liquidate the chain under terms of the agreement.