NO NAME FILES SECOND CH. 11 IN TWO YEARS
NEW YORK — For the second time in two years, women’s specialty retailer No Name Stores Inc. has filed for Chapter 11 protection seeking to reorganize.
The 30-unit chain said it was forced to seek bankruptcy protection after defaulting on a payment to creditors. The payment was required under the company’s first bankruptcy filing in January 1994.
No Name listed liabilities of $2.8 million, all unsecured, and assets of $1.4 million. The firm blamed its financial woes on fierce competition, a weak economy and “the bleak status of the retail industry over the past few years.”
Tracy Klestadt, counsel to No Name, said the firm plans to close “10 or 11 stores” in the next month or so as part of the reorganization.
Klestadt said the company, based at 250 West 39 St., received emergency approval to borrow up to $250,000 and purchase up to $500,000 in inventory from apparel maker Young Men Inc., Toronto.
The company will seek approval on Feb. 15 for a permanent debtor-in-possession facility that will allow it to borrow up to $500,000 in cash and make $1.5 million in inventory purchases from Young Men, Klestadt said.
For the 30 days after the filing, No Name estimated that its cash receipts will be $300,000 and cash disbursements will be $500,000.
The largest unsecured creditors are: Long Island Savings Bank, owed $993,996; Y.M. Inc., Toronto, $920,213; The Young Mfg. Inc., Toronto, $91,338, and Rosenthal & Rosenthal, $37,489.
Bankruptcy Judge Cornelius Blackshear will hear the case.