Liquidator Submits Top Bid for Whitehall
August 07, 08 by Courtesy of National Jeweler Network
A liquidator proposing a going-out-of-business sale submitted the best bid for now-bankrupt Whitehall Jewellers Holdings Inc., and it is now up to the Chicago-based jewelry chain to decide how it wants to move forward, court documents show.
According to a document filed on Monday with the U.S. Bankruptcy Court for the District of Delaware, the auction for Whitehall "concluded with the determination that the best bid had been submitted by a leading liquidator proposing a going-out-of-business sale at [Whitehall] locations," but Whitehall has "not made any commitment to move forward with that proposal at this time."
Instead Whitehall, along with its creditors committee and secured lenders, still is weighing all of its options "to maximize recoveries for all of the debtors' stakeholders under the circumstances," according to court documents.
An "anticipated imminent" sale of Whitehall's assets is scheduled for August 8, court document show.
The sale is expected to include additional negotiations.
Whitehall filed for Chapter 11 bankruptcy protection on June 23, at which time it operated 375 stores under the brands Whitehall Jewelers and Lundstrom Jewelers.
Prior to its filing, Whitehall purchased 78 stores in 17 states from bankrupt Friedman's for $14.3 million.
The chain ranked No. 5 on National Jeweler's list of the Top 50 North American Retail Jewelry Chains, as ranked by store count.
