Tuesday, October 21, 2008

$34 Million Net---From Bankruptcy Sale

Shoe Pavillion Inc. said late on Monday that it will close all of its 64 stores after a liquidation sale.

The Sherman Oaks-based discount shoe store filed for bankruptcy in July and joins Mervyns LLC of Hayward and Linens-N-Things Inc. of Clifton, N.J., on a growing list of major retailers that are shutting down this year.

U.S. Bankruptcy Judge Maureen Tighe approved the liquidation order Friday to have 10 to 12 weeks of sales run by a joint venture group of Great American Group LLC of Los Angeles, SB Capital Group LLC of Great Neck, N.Y.; Tiger Capital Group LLC of Boston and Hudson Capital Partners LLC of Fort Lauderdale, Fla. The liquidation is expected to bring in $36.3 million.

Shoe Pavilion had been in business for 29 years and at one time had 117 stores. The company has stores outside of California in Arizona, Nevada, New Mexico, Oregon, Texas and Washington. Signs in the store at Sansome and California streets in San Francisco’s Financial District said, “Everything must go.”

“It is always tough to close down stores, but consumers will benefit from the extreme discounts on every item in the stores until all the merchandise is sold,” Danny Kane, managing member of Tiger Capital Group, said in a news release Monday.

OK, only in these times can we see a liquidation sale of $34 Million and it still not be enough to save the corporation! Simply staggering amounts of money being lost. Now I wonder who's on the other side of the loot!

"The art of being wise is knowing what to overlook."---William James

Lovin Life, Truth Is