STROUDS FILING FOR CHAPTER 11.Byline: Dereck Andrade Staff Writer CITY OF INDUSTRY - Bed and table linen retailer Strouds Inc. filed for Chapter 11 bankruptcy protection Thursday and announced it was closing unprofitable stores across the country, including two in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. halted trading of the City of Industry-based company. Market officials said they wanted additional information about the voluntary bankruptcy voluntary bankruptcy n. the filing for bankruptcy by a debtor who believes he/she/it cannot pay bills and has more debts than assets. Voluntary bankruptcy differs from "involuntary bankruptcy" filed by creditors owed money to bring the debtor before the bankruptcy filing by Strouds before allowing the stock to resume trading. ``The reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. hasn't yet been developed,'' said Ann Julsen, a Strouds spokeswoman. ``It is just too early to give a time frame to Nasdaq.'' Julsen said it could be months before Strouds has a reorganization plan in place. Prior to its trading being halted at 8:30 a.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT , Strouds stock had dropped 11.11 percent. The last trade was at 50 cents a share. On Wednesday, Stroud's stock had fallen 31 percent. Strouds' founder, Wilfred Stroud, reportedly owns 12 percent of the company's stock. He was unavailable for comment. Strouds has received a commitment for up to $50 million in debtor-in- possession financing from The CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously. Which past endurance sting the tender cit. - Emerson. Group/Business Credit and Foothill Capital Corp. to fund its operations during the restructuring. The company has retained turnaround and corporate renewal firm Brincko Associates Inc. as financial restructuring advisers. Strouds filed a Chapter 11 petition Thursday in the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. in Wilmington, Del. Officials with the retailer of bed, bath and table-top linens also said they planned to close nine ``unprofitable or underperforming stores'' in four states, including those in Rolling Hills Estates and Santa Barbara. The closures would not immediately affect stores in Encino and Studio City. ``At this point, there are no additional California closures planned, but they will be reviewing all of their locations as the process continues,'' said Strouds spokeswoman Ann Julsen. The Chapter 11 filing will assure the continued flow of merchandise to the company's stores during the reorganization, according to Strouds officials. Under a Chapter 11 filing, a business can gain temporary relief from paying debt in order to attempt a successful reorganization. The debtor remains in control of the business during the bankruptcy and the business continues to function. Pamela Rucker, a vice president with the National Retail Federation in Washington, D.C., the world's largest retail trade organization, said retailers like Strouds had poor sales this summer, a factor that may have led to the bankruptcy. ``Several major retailers have reported poor sales, including The Gap, The Limited and Federated Connected and treated as one. See federated database and federated directories. , which owns Macy's Department Stores,'' said Rucker. |
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