Court Dismisses Fortunoff Chapter 11 Bankruptcy Case

The New York bankruptcy court has agreed to dismiss the Chapter 11 bankruptcy case for the new owners of distressed jewelry retailer Fortunoff.

The U.S. Bankruptcy Court for the Southern District of New York came to its decision after NRDC Equity Partners reached an agreement with some of Fortunoff’s creditors, the company said in a statement released on Sunday.

The equity fund finalized its purchase of Fortunoff in February after the company had filed for bankruptcy protection. NRDC said in March that it plans to invest some $100 million in Fortunoff, including the addition of new stores.

Fortunoff owed more than $19 million to creditors. The court approved it to deny all pending motions to allow claims.

Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the U.S. and is available to any business, whether organized as a corporation or sole proprietorship.