ICING TO START GOBS WHEN COURT OK’S LIQUIDATOR
Byline: Rich Wilner
NEW YORK — The Icing, an 86-unit accessories and apparel specialty retailer that has continued to lose money since filing Chapter 11 on May 4, has decided to liquidate.
It will begin going-out-of-business sales to convert its assets to cash once a liquidator is chosen and confirmed by the court.
The decision to shut the business was made last week, after the chain’s equity holders refused to pump more cash into the company, according to court papers filed in Bankruptcy Court in Wilmington, Del.
Rhonda J. Brown, president and chief executive officer of The Icing since April 29, has resigned and the chain’s directors and unsecured creditors’ committee agreed to hire Michael J. Sherman, of M.J. Sherman & Associates Inc., to oversee the GOBs.
The board and the creditor group, represented by Scott Hazen, of Otterbourg, Steindler, Houston & Rosen, said in court papers that someone with experience in overseeing a liquidation was needed to maximize the yield on The Icing’s unencumbered assets.
Gordon Bros. Financial Corp. has a lien on the chain’s inventory and certain other assets.
Sherman is in the process of selecting a liquidator for the Enfield, Conn.-based chain. According to sources close to the chain, Keen Realty Consultants, Great Neck, N.Y., is the choice to market the leases.