Ames files for Ch. 11 protection
August 27, 2001-- Home Textiles Today,
Ames Department Stores has filed for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code in the Southern District of New York.
The company will continue to operate its store base of more than 400 stores, pay its employees and reimburse suppliers on normal terms for merchandise delivered and services provided after the reorganization filing, the retailer said. It will also continue to make needed investments in its operations to ensure its competitive position moving forward.
The company has two completed agreements for debtor in possession credit facilities totaling $755 million — one with GE Capital for $700 million and the other with Kimco Funding LLC for $55 million. Upon court approval, these will provide for the company's ongoing operations and for payment of post-petition receipt of merchandise.
The company announced last week that it would close 47 stores by October.
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