INVOLUNTARY LIQUIDATION FILED AGAINST EVANS BY CREDITORS
NEW YORK — Three creditors of Evans Inc. filed on Friday an involuntary bankruptcy petition against the company in Manhattan bankruptcy court.
The filing, according to court documents, was a Chapter 7 liquidation petition. The creditors, represented by Jay Silverberg, of Silverberg, Stonehill & Goldsmith, are The N.Y. Fur Place Inc., owed $724,381; The Newmont Group Inc., $225,373, and Europa Furs Corp., $594,429.
Evans said in a statement Monday that it “will proceed under the Chapter 11 reorganization provisions of the Bankruptcy Code.” The company, which also said it is close to finalizing a post-petition financing facility with its secured lender, will need to ask the bankruptcy court to convert the involuntary filing to a Chapter 11 case.
Samuel B. Garber, president and chief executive officer of Evans, said in a statement Monday, “Evans is disappointed at the precipitous action taken by these three petitioning creditors. At the time of the filing, we were in the process of negotiating an out-of-court restructuring with our secured lender and developing a reorganization plan for our business.”
He added, “We anticipate emerging from Chapter 11 in [a] reasonably short time frame, as a leaner and more profitable operation more focused on fashion and quality fur.”
The Chicago-based company has six company-owned stores in the Chicago area and operates 49 leased fur departments in major department stores nationwide. Evans said it had over $40 million in assets and $90 million in sales in 1998.
As reported, Evans said in July that it was putting its six stores up for sale in a move to concentrate on its leased fur department business. The six stores are located at 36 South State Street and the Ford City Shopping Center in Chicago; River Oaks Shopping Center in Calumet City, Ill.; North Riverside Shopping Center in North Riverside, Ill., and two stores at the Evergreen Plaza Shopping Center in Evergreen Park, Ill.
Evans closed three other stores in July, located in Yorktown Shopping Center in Lombard, Harlem Irving Plaza in Norridge and Orland Shopping Center in Orland Park, all in Illinois.