ORMOND PLANS TO SHUT 50 UNITS AND SELL OTHERS
NEW YORK — The Ormond Shops Inc., an 85-unit women’s off-price chain in Chapter 11 reorganization since April, is planning to close about 50 stores and sell off most of the rest, according to court papers.
The North Bergen, N.J.-based chain has been battling losses and slumping sales for several years. It operated 197 stores as recently as last December.
In the five weeks ended Oct. 29, the chain reported a loss of $619,000 on sales of $6.2 million, according to credit sources.
The chain has asked for bankruptcy court permission to hire Gordon Brothers to run going-out-of-business sales at roughly 50 units. A hearing is scheduled for Nov. 15 in Wilmington, Del. bankruptcy court.
The chain is negotiating with a suitor to sell 33 leases following going-out-of-business sales, said William Fabrizio, of Hahn & Hessen, counsel to the unsecured creditors’ committee. He would not name the suitor.