S&K Famous Brands to ask permission to hire liquidator

S&K Famous Brands Inc. will ask a bankruptcy judge this afternoon for permission to hire a liquidator to close 30 stores, including one at Regency Square and two others in Virginia.

The Henrico County-based menswear retailer filed for bankruptcy Feb. 9.

S&K has already struck a deal with Gordon Brothers Retail Partners LLC to close the stores with a "potential break-up fee of $50,000," according to court papers.

Other potential bidders had until 9:30 a.m. to present proposals. S&K will file a list of the bidders with the court by noon.

At a 2 p.m. hearing today, S&K will ask Judge Kevin R. Huennekens to either allow it to auction for the right to liquidate the stores or, if there are no competing bids, to approve the agreement in place with Gordon Brothers. The auction would be held this afternoon at the chain's attorney's office.

The agreement with Gordon Brothers, assuming minimum inventory requirements, guarantees a return of no less than $1.94 million to S&K, court papers say.

At this afternoon's hearing S&K will also ask the court to set auction procedures to sell its corporate headquarters on West Broad Street off Interstate 64.

The chain has an agreement in place with TGM Realty Investors Inc, a subsidiary of Richmond based Thalhimer Commercial Real Estate, but must open the process to competing bidders.

The existing deal sells the property for $5.6 million, but allows the S&K to lease back a store on the site for five years, and office and warehouse space for six months.