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Bankrupt Fortunoff Seeks Immediate Auction

By Furniture Today Staff -- Gifts and Dec, 2/10/2009 9:50:00 AM

New York — Less than a week after filing for Chapter 11 bankruptcy protection, home furnishings and jewelry retailer Fortunoff asked a U.S. Bankruptcy Court judge to swiftly approve an auction and sale of virtually all of its assets. Fortunoff said the sale needs to take place quickly because the company "is facing a severe liquidity crisis."

The retailer has asked the court to require potential buyers to submit bids by February 16 and conduct an auction on February 19. Following the auction, the retailer is asking the court to conduct a hearing to approve the sale on February 23.

A so-called "stalking horse" bidder isn't listed in documents filed with the court, and Fortunoff said it wouldn't object to the company being sold to more than one bidder. The company could be sold in its entirety as a going concern, or a separate bidder could emerge for the company's inventory, according to the court filings.

In court filings, the company described sales during the 2008 holiday season as "dismal," and said many vendors had tightened their credit terms in the weeks leading up to the bankruptcy filing. For the nine months ended November 30, the company had sales of $260.1 million, but recorded an operating loss of $42.2 million.

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Farewell to one of best retail operations in the industry. I personally will
miss the buyers and their staff who performed their duties with style,
dignity and fairness.

Fred - 2009-02-10 12:04:00 EST

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