AILEEN EXPECTS TO DECIDE ON LIQUIDATION IN AUGUST

NEW YORK--Aileen Inc., the ailing women's apparel retailer, said Wednesday it should know by August whether it can successfully reorganize around its retail chain or whether it will be forced to liquidate.
As part of its Chapter 11 reorganization effort, Aileen recently closed its manufacturing facilities.
"Clearly, the summer sales will reflect whether the company has a viable future," Henry Condell, of Parker, Chapin, Flatteau & Klimpl, counsel to Aileen, said at a bankruptcy court hearing Wednesday.
Aileen, which filed for Chapter 11 protection in January 1994, also said at the hearing that it is planning to shut 34 underperforming stores. No date for the closing was given, but a hearing to approve the move was set for April 13.
At Wednesday's hearing, Aileen also received bankruptcy court approval for its $7 million revolving credit facility with CIT Group/Business Credit Inc. Aileen will use the infusion of cash to pay off its previous lender and to purchase merchandise to put into its 114 stores.--Fairchild News Service

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