- Angela Gonzalez-Rodriguez |
New York - Bon Worth, an U.S. womenswear retailer that used to operate more than 300 stores across the country, has filed for Chapter 11 bankruptcy protection.
Known by their polyester-based garments, Bon Worth reported in a bankruptcy petition filed on August, 16 and reported earlier this week that it had assets valued at 1 million dollars to 10 million dollars and liabilities of 10-50 million dollars.
It also reported numerous large debts to suppliers, distributors and landlords in shopping malls and outlet centers including FedEx and UPS Freight.
Judge George R. Hodges who overviews the case, has authorized the retailer corporation to pay both employees and debtors. He also granted the company’s request to borrow money to continue its business. Without financing, the company “does not have sufficient available sources of working capital, including cash collateral, to operate its businesses … purchase inventory, maintain business relationships with its vendors, suppliers and customers, to pay its employees, and to otherwise fund its operations,” Baynard said in the court filing. “The ability … to obtain sufficient working capital, liquidity and inventory through the proposed post-petition financing arrangements … is vital to the preservation and maintenance” of the company, further added the judge.