NEW YORK — Woodward & Lothrop expects to emerge from Chapter 11 by the first quarter of 1995, the company said in a court filing.
The chain, which operates 16 Woodward & Lothrop and 15 John Wanamaker stores, also said it started working on its long-range business plan, which will serve as the basis for its plan of reorganization. Aspects of the business plan were not released.
The statements were made in filings in bankruptcy court here, seeking to extend W&L’s exclusivity period six months to Nov. 18 from May 17. During an exclusivity period, only the debtor can file a plan of reorganization. Such extensions are common.
A hearing on W&L’s motion to extend the exclusivity period is scheduled for next Monday.
“For the first time in many years, W&L have [sic] the opportunity to grow their businesses free of operational constraints in the form of vendor deposits, letters of credit and other costly financial accommodations,” the company said in its motion papers.
Also in the motion, the Washington, D.C.-based retailer said it expected its plan of reorganization to “provide significant value to creditors.” W&L attorneys did not return telephone calls seeking further information on the payout.
When it filed on Jan. 17, W&L listed assets of $608 million and liabilities of $659 million.
In another matter, W&L will close its small store in the Pentagon when its lease runs out in June.
The store sells mainly women’s accessories and cosmetics to Defense Department employees. Although it is the first to be shut since it filed for bankruptcy, the closing is unrelated to the filing, said Robert Mulligan, vice chairman.
He said no other closings are planned.
The 11 employees of the 8,200-square-foot store, which has been open since the Pentagon was completed in 1943, will be relocated to other W&L units. The company operates 16 department stores in the Washington area, including four in northern Virginia, where many Pentagon employees live.