Bachrach Acquisition, the owner of the bankrupt Bachrach men’s specialty store chain in operation for 133 years, said Monday that a Manhattan bankruptcy court has scheduled an auction of the retailer’s assets for Feb. 22.
The firm, founded in 1877 and known for its catalogue as well as its stores, filed a voluntary Chapter 11 petition on May 6. The auction will be held at 10 a.m. at the Manhattan offices of its bankruptcy counsel, Platzer, Swergold, Karlin, Levine, Goldberg & Jaslow.
Bachrach Acquisition acquired the assets of Bachrach Clothing Inc. in June 2006 through a Chicago bankruptcy court auction, just over a year after it was acquired by Sun Capital Partners Inc. from the Bachrach family.
Brian Lipman, chief executive officer of Bachrach Acquisition, said in a court affidavit filed last year that the factors contributing to the bankruptcy were the “substantial loss of sales due to the nation’s broad economic downturn and the debtor’s inability to purchase new inventory due to a reduction of the debtor’s line of credit.”
The company operated 49 stores at the time its Chapter 11 petition was filed.
For the year ended Dec. 31, 2008, Bachrach posted a loss of $10.7 million on sales of $46.9 million.
Wells Fargo provided a $6.5 million debtor-in-possession financing facility.
Simon Property Group in Indianapolis is listed as the largest unsecured creditor, holding a claim of $1.2 million. Other real estate investment trusts among the top unsecured creditors are General Growth Properties, Chicago, $671,674; Taubman, Bloomfield Hills, Mich., $380,099, and Macerich Partnership, Los Angeles, $324,711.
Also in the top 20 list is CIT Group/Commercial, New York, at $462,056.
Wells Fargo Bank, New York, is the top secured creditor, holding a $6.2 million pre-petition claim. Also on the top five secured creditors list is Bachrach Investors, New York, $220,000, and Weatherproof Garment Co., Bay Shore, N.Y., $692,237.