NEW YORK — Mansour’s Inc. on Wednesday filed for Chapter 11 bankruptcy court protection.
The small, family owned and operated specialty department store was established in 1917.
Fred Mansour, chief executive officer, could not be reached for comment.
The legal documents were filed in a bankruptcy court in Atlanta. The family had been reducing overhead during the past few years by closing stores and divisions. Two Mansour’s stores were shuttered at the end of last year. One of those units, in Macon, Ga., was once voted the “best store for customer service” in 2002 by readers of the Macon Telegraph.
However, a faltering economy and mounting losses at the start of the millennium forced management to cut underperforming assets. By the end of 2001, the company’s two G. Mansour’s men’s wear stores, one in LaGrange, Ga., where the chain is headquartered, and the other in Columbus, Ga., were also shuttered.
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The company evolved into a chain primarily for women’s wear, but even the narrower focus couldn’t stem the flow of red ink. A Mansour’s in Columbus closed recently, and, according to a credit source, there were just two stores remaining on Wednesday when the chain filed for Chapter 11.
According to the bankruptcy filing, the estimated number of creditors is more than 1,000. Among the largest unsecured trade creditors are: Kellwood, Chesterfield, Mo., $138,619; Estée Lauder/Clinique, Melville, N.Y., $98,846, and Josephine Chaus, Secaucus, N.J., $66,681. Other trade creditors on the men’s wear side include: Polo Men, Lyndhurst, N.J., $28,071, and Hickey Freeman, Rochester, N.Y., $27,647.
Meanwhile, in a separate case, Samuels Jewelers Inc. said it was set to emerge from bankruptcy proceedings as a private company. The jewelry chain said last Thursday that a bankruptcy court has confirmed its plan of reorganization.
Under the terms of the plan, the bulk of the company’s debt will be converted to equity, and certain “critical” continuing vendors will receive payment in full for their claims over a period of 18 months.
Current senior management will remain employed at the firm. The chain has been operating under Chapter 11 since August 2003.
— Vicki M. Young and Brenda Lloyd