NEW YORK — Clothestime Inc., which has been reorganizing under Chapter 11 proceedings since Dec. 1995, has retained Financo Inc., the New York investment banking firm, to sell the juniors off-price chain.
Larry Gottlieb, counsel to the unsecured creditors, at Siegel, Sommers & Schwartz, said Clothestime and the creditors committee retained Financo “to market the company in looking for an investor. We’re trying to sell the company.”
Clothestime has closed 170 stores and now has 360 stores in operation in strip centers. A Clothestime spokesman noted that the hiring of an investment banking firm to look at a sale option is “routine,” and the company may still emerge from bankruptcy as a stand-alone operation.
He noted that consumers are responding well to some new initiatives, including a greater emphasis on career dressing and the hiring of its first spokeswoman, Gina Lee Nolan, an actress on Baywatch.
Joshua Goldberg, managing director of Financo, will head the effort to find a buyer.
In the six months, Clothestime’s operating loss was cut to $4.4 million from $7.6 million. The net loss was $10 million, including reorganization charges of $5.6 million, against a deficit of $4.8 million a year earlier. Sales dropped 36.2 percent to $103.2 million.