W&L GETS 5TH EXTENSION ON REORGANIZATION PLAN
NEW YORK — Woodward & Lothrop was granted a 60-day extension until May 22 to file an exclusive plan of reorganization, the fifth extension since Chapter 11 proceedings started in January 1994.
At a hearing Wednesday, Matthew Feldman, of Willkie, Farr & Gallagher, counsel to W&L, and Michael Guss, of Jones, Day, Reavis & Pogue, attorney for unsecured creditors, told Bankruptcy Judge Stuart Bernstein that “substantial progress” has been made toward a consensual reorganization plan. But the attorneys said the retailer continues to explore all options for emerging from bankruptcy, including a sale of assets.
One possible purchaser could be the United Food and Commercial Workers’ Union, representing 4,000 employees from W&L stores, and 10,000 employees from W&L’s John Wanamaker division.
Tom McNutt, UFCW president, said the union would consider buying the firm if another purchaser looks to exclude the union. He said the UFCW hired investment banking firm American Capital Strategies to weigh the feasibility.