Harold’s Stores Inc. (Dallas) has filed a liquidating Chapter 11 petition with a bankruptcy court in Oklahoma City, Okla., the latest victim of the economic downturn.
The upscale apparel retailer operates 41 specialty stores and two outlet stores in 19 states. Its bankruptcy filing said it incurred a net loss of $7.7 million for the 26 weeks ended Aug. 2, 2008. Its sales for the period were down 23.6 percent.
Earlier this fall, according to Daily News Record, Harold’s obtained $1.8 million in additional financing from Ronus Inc., but court papers said that Ronus and Harold’s primary shareholder, Ronald de Waal, were unwilling to fund the retailer’s operation in light of ongoing losses.
Harold’s ceo Ronald Staffieri said the company hired Richter Consulting Inc. in October to try to find a buyer. When none emerged, said DNR, the retailer began analyzing the four bids it received for a liquidation of its merchandise. Harold’s chose Gordon Brothers to handle the sale of its merchandise, furniture, fixtures and equipment. The retailer wants the court to approve liquidation sales as soon as possible after its filing to preserve the value of seasonal merchandise on hand.