Dawahare's, a 101-year-old specialty retailer of men's and women's apparel based in Lexington, Ky., has begun liquidation sales, but even after the going-out-of-business bargains are sold unsecured creditors aren't likely to get anything on their claims.
A complete shutdown of all operations is expected by Sept. 30. The retailer said in court documents that "there may be some" proceeds available to be distributed to unsecured creditors, but that it "may not be meaningful."
The chain, founded by Syrian immigrant Serur Frank Dawahare, has remained a family operation for four generations. It filed for Chapter 11 bankruptcy court protection on May 30 in Kentucky. In court documents, the retailer listed total assets at $10 million and liabilities at $9.3 million.
After closing seven stores and terminating 107 employees after its bankruptcy filing, Dawahare's has employed about 400 staff and continued to operate 22 stores. Its remaining stores are in Kentucky, Tennessee and West Virginia.
Dawahare's has entered into an agreement with Hilco LLC to conduct store closing sales.