After quietly filing for Chapter 11 protection in January, liquidation sales are imminent for the business operations of Shabby Chic, domestic designer Rachel Ashwell’s home furnishings brand.

This story first appeared in the March 16, 2009 issue of WWD. Subscribe Today.

Following a hearing in federal bankruptcy court in Los Angeles on March 9, Judge Thomas Donovan authorized Hilco Merchant Resources LLC to conduct closing sales and liquidate inventory at eight remaining Shabby Chic retail locations, a distribution center and a manufacturing center. The assets up for sale do not include the intellectual property of Rachel Ashwell Designs Inc., which operated the Shabby Chic business.

In a filing dated March 3, lawyers said Ashwell herself was the only party interested in keeping Shabby Chic alive as a going concern but had not entered a bid. According to court documents, the company owed its three groups of secured creditors between $27.7 million and $28.8 million.

Founded by Ashwell in 1989, Shabby Chic grew to include a small network of stores across the country and a line with Target. Though best known for its boho take on home decor, the brand occasionally branched out to fashion, such as a sleepwear line launched in 2004.

The company’s bankruptcy counsel did not return a call for comment.