GANTOS TO REVISE CHAP.11 PLAN
NEW YORK — Gantos Inc., the 114-unit women’s chain, will revise its plan of reorganization and postpone its emergence from bankruptcy due to disappointing October sales and unrest among certain creditors.
The chain, based in Grand Rapids, Mich., filed for bankruptcy in November 1993. Last September, it said it expected to emerge from Chapter 11 early in 1995. However, after October sales dipped 8 percent to $14 million, Gantos said it would file a revised plan “in the next several weeks.”
Adam Moskowitz, an analyst with BDS Securities, said that if an agreement over the valuation of the payout to unsecured creditors was not reached in the next couple of weeks, Gantos may be forced to wait until after Christmas to file the revised plan.
Gantos filed a Chapter 11 plan offering cash, debt and equity on Sept. 29, detailing a 100 percent to unsecured creditors. However, certain creditors claim the value of the payout is far short of 100 percent.