S&K Famous Brands Inc. has filed a motion asking for permission to sell itself to Hilco Merchant Resources Inc. S&K filed for Chapter 11 bankruptcy protection in February.
Hilco has been overseeing some S&K store closings and is known for running liquidations of retail chains.
In an e-mail, an S&K spokeswoman said the sale to Hilco did not mean that the Henrico County-based S&K was going to liquidate its assets.
"The motion contain[s] provisions that allow Hilco to own and operate as many stores as they see fit, and management is working with representatives from Hilco to craft a transaction that supports and funds a viable S&K," wrote MaryJo Steinmetz.
S&K will seek permission from a bankruptcy judge to open the sale up to other bidders in an effort to get more money for the retailer. Hilco will be the stalking-horse bidder, setting the starting price.
S&K's motion was filed at 10:30 p.m. Friday. The retailer requested that a motion on the hearing be held on Tuesday. The court must approve a final sale.
--Louis Llovio
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