S&K files for bankruptcy
Photo provided by Thalhimer/Cushman & Wakefield
S&K Famous Brands Inc.‘s corporate headquarters in western Henrico County, at Interstate 64 and West Broad Street.
S&K Famous Brands Inc.‘s retail store next to its corporate headquarters in western Henrico County.
A bankruptcy judge has given S&K Famous Brands Inc. interim approval for a $13 million line of credit to help the chain as it reorganizes.
The Henrico County-based chain of menswear stores, filed for Chapter 11 bankruptcy protection this morning in court in Richmond.
As part of the interim approval, the chain must find a buyer for its headquarters complex on West Broad Street by May 15. A bidder has committed to offering $5.5 million for the property, a company attorney said. The identity of the bidder was not given.
S&K must still open the process to other bidders.
The complex includes a store, the two-story headquarters building and a 110,000-square-foot distribution center.
S&K operates 136 stores, mostly in the mid-Atlantic and the Carolinas.
According to a filing this morning, the chain has $41 million in assets and $35.5 million in liabilities.
Richard H. Hardy Jr., vice president of finance and information technology, wrote in a statement filed with the court that S&K ran into a "perfect storm."
The troubles included vendors losing faith and, in some cases, demanding cash up front for merchandise; decreased liquidity because of tightening credit markets; and a drop in consumer spending.
--Louis Llovio
Advertisement
Reader Reactions
No surprise here. When they announced they were selling their big office to move into little offices, this was the obvious next step. Within a year, S&K will go the way of Circuit City.
Post a Comment(Requires free registration)
- Please avoid offensive, vulgar, or hateful language.
- Respect others.
- Use the "Flag Comment" link when necessary.
- See the Terms and Conditions for details.
Advertisement