Jewelry and home furnishings retailer Fortunoff has stopped paying its bills in recent weeks and could be considering Chapter 11 bankruptcy court protection as well as other options to reorganize its business, according to financial sources.
One credit source stressed a bankruptcy filing is only one option. A bankruptcy would give the specialty retailer some breathing room from its creditors.
Another option would be for the founding Fortunoff family, which retains a minority stake and still owns some valuable real estate, to sell some of those assets, sources said.
The company could not be reached for comment.
For further coverage, see Thursday’s WWD.