Retail

Clothing Chain Love Culture Files for Bankruptcy, May Be Sold

July 17, 2014

Love Culture Inc. yesterday filed for Chapter 11 bankruptcy, becoming the latest women's apparel retailer to seek protection from creditors, and said it may be sold after having received interest from possible buyers, Reuters reported yesterday. The company, which according to its website has 82 stores stretching from Massachusetts to Hawaii, joins Ashley Stewart Holdings Inc., Coldwater Creek Inc., Dots LLC and Loehmann's Inc. among retailers to file for bankruptcy since late last year as consumers curb spending and visit malls less. In a court filing, the company's chief restructuring officer, Rick Bunka, said sales remain below projections, while vendors in April began curbing credit and demanding payment for goods faster or upon delivery, leading to "significant liquidity challenges." Love Culture said it plans during the bankruptcy process to close money-losing stores, restructure its debt and investigate options "including a possible sale of substantially all of its assets as a going concern."

Quiznos's Former Executives Sue Non-bankrupt Entities

July 16, 2014

Former executives and officers of sandwich chain Quiznos are suing several Quiznos-related entities that didn't file for bankruptcy, demanding the entities defend them in litigation being promised by former Quiznos owners Avenue Capital Management and Fortress Investment Group LLC, Dow Jones Daily Bankruptcy Review reported today. This lawsuit brought by Quiznos founder Richard Schaden, former board members, a former chief executive and a former chief financial officer says that the entities agreed to pay in advance for legal fees and costs associated with defending their work for Quiznos, according to the lawsuit filed Friday with the Delaware Chancery Court.