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Stage Stores Announces Store Closing Program
Stage Stores Inc. yesterday announced that the U.S. Bankruptcy Court for
the Southern District of Texas approved the company's plan to close 120
underperforming stores as a part of its restructuring process, according
to a newswire report. Ozer Group and Hilco Trading Co. have been
approved to manage the liquidation process in underperforming department
stores operated by Stage Stores Inc. of Houston. Jack Wiesner, chairman,
interim chief executive officer and president, said, 'As a part of our
restructuring process, we identified 470 core stores in 20 states which
will serve as our base for returning the company to profitability. The
120 stores we will be closing represent stores that were not profitable
or stores which are outside of our geographic base.'
Under the agreement, Stage will receive a guaranteed price for the
inventory and net of related expenses located in these stores while Ozer
and Hilco will manage and be responsible for all aspects of the
liquidation process. Based in Northbrook, Ill., Hilco Merchant Resources
provides strategic financial services for retailers, distributors,
manufacturers, asset-based lenders, venture capitalists and investment
bankers. The Ozer Group, Needham, Mass., is a retail consulting,
business evaluation and asset disposition firm.
Claridge Reorganization Plan Rejected by Stockholders
The Claridge Hotel and Casino Corp., operator of the Claridge Casino
Hotel in Atlantic City, N.J., yesterday reported that the holders of the
corporation's $85 million first mortgage notes voted to reject the first
amended joint plan of reorganization, according to a newswire report.
The corporation intends to move forward to have the plan confirmed under
the §1129B cramdown procedure. The confirmation hearing is
scheduled to begin on Sept. 6. The corporation and The Claridge at Park
Place Inc. filed voluntary chapter 11 petitions on Aug. 16 in order to
facilitate a financial structuring. On Oct. 5, Atlantic City Boardwalk
Associates L.P. also filed a voluntary petition under chapter 11.
ContiFinancial Settles Bank Group, Noteholders Payment
Dispute
ContiFinancial Corp. won court approval of a settlement with its bank
group and unofficial committee of noteholders that resolves disputes
between the two factions over interest payments the subprime lender made
shortly before it filed for chapter 11 protection. The disputes between
ContiFinancial's
two major creditor constituencies delayed the company from moving
forward with its reorganization efforts.
Courtesy
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