Value City to liquidate, files Ch. 11
-- Home Textiles Today, 10/27/2008 9:20:00 AM
Columbus, Ohio – Value City has filed for Chapter 11 bankruptcy protection in the Southern District of New York, citing the economic downturn, tightened credit and limited consumer spending.
According to court documents, the company intends to liquidate. For the seven months ended August 31, Value City posted a net loss of $70 million on sales of $288.5 million, according to court filings.
The company currently operates 66 stores. Since December of last year, Value City has closed more than 75 stores.
Value City’s largest creditor is DSW Inc. – formerly its sister division in Retail Ventures Corp. DSW is owed approximately $4.5 million. Value City’s second largest creditor is NEJ Whole Clothing, owed nearly $1.4 million. The third largest creditor is Schottenstein Stores Corp., another entity controlled by the founding Schottenstein family, owed just under $1 million.
Two home textiles companies were listed among the top 50 or so creditors: Barkat, Inc., owed about $348,000 and Biddeford Blankets, owed about $194,000.
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