A bankruptcy judge yesterday refused to sign off on chapter 11 plan voting materials for Coldwater Creek Inc. and urged the liquidating retailer and its creditors to work out their differences over the payout scheme, the Wall Street Journal reported today. Bankruptcy Judge Brendan Shannon cited concerns that litigation over the money raised in the liquidation of the women’s clothing seller will erode the value gathered in Coldwater Creek’s bankruptcy and cost creditors more than they will gain. Coldwater Creek is no longer operating its stores but liquidators continue to run going-out-of-business sales, and a private equity firm that bought the brand has said it will revive the clothing line.
