RICKLIS BUYS ASSETS OF MCCRORY CORP.
NEW YORK — Meshulam Riklis, chairman and chief executive officer of McCrory Corp., acquired the assets of the bankrupt general merchandiser for $51 million.
McCrory, which filed Chapter 11 in February 1992, has 160 variety stores. The purchase was made through HGG Acquisition Corp., an entity controlled by Riklis.
About $16 million of the $51 million used to fund the deal will be distributed to administrative creditors, who will receive 18 cents on the dollar. Administrative creditors are generally professionals who worked on the case. Unsecured creditors got nothing for their claims, which totaled $516 million.