Simply Fashion's unsecured creditors are pushing back against the retail chain's proposal to run going-out-business sales in a deal that would bring just $4.4 million into the bankruptcy estate, saying the only parties to benefit will be the owners of the closely held company, Dow Jones Daily Bankruptcy Review reported today. An auction scheduled for yesterday was canceled when no other bidders came forward to challenge an offer from liquidators at Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC . The pair proposes paying Simply Fashion 27.5 percent of the retail value of the remaining merchandise in its roughly 250 stores. The money raised from the sale, estimated at around $4.4 million, won't come close to covering the $9 million in secured debt and $9.9 million in unsecured debt owed to insiders of the company, creditors said in a Monday filing in bankruptcy court.
