Delia's, the teen fashion retailer, to close 92 stores

Delia's, the struggling US teen fashion retailer, is to close 92 of its shopping mall stores after it failed to find a buyer.

The 21 year-old company, filed for bankruptcy protection with assets of 47 million dollars and debts of 50.5 million dollars.

Gordon Brothers Retail Partners and Hilco Merchant Resources will pay Delia's 91 percent of the cost value of its merchandise for the right to conduct the sales, filings seen by Down Jones News showed.

At a hearing in US Bankruptcy Court in White Plains, New York State, a judge signed off on the sales and allowed Delia's to begin tapping a 20 million dollar bankruptcy loan from lender Salus Capital.

The judge also approved a series of requests allowing Delia's to continue its day-to-day operations, including the ability to pay its 419 full-time and 2,191 part-time employees. The company let go 51 employees in its corporate office Friday, filings show, and two top executives resigned from their roles.