Fashion retailer Joyce Leslie has got a nod from the US Federal Bankruptcy Court for the sale of its intellectual property and stores, together with the lease of its corporate office and distribution centres.
Lee Diercks, Chief Restructuring Officer of Joyce Leslie said, “Unfortunately we were unable to find a going concern buyer for the company, but this sale allows us to sell the rights to these retail leases and the company’s intellectual property. Most of the leases have very favourable lease terms, and are in good locations throughout New Jersey, New York City metro area, Long Island, Connecticut and the Philadelphia metro area,” adding, “We have received considerable interest from a number of retailers based in the Northeast for numerous locations; and we expect a robust auction.”
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Joyce Leslie, which operates around 50 stores, filed for Chapter 11 last month seeking approval of selling out its property, post witnessing continuous plunge in sales at its stores. The bankrupt retailer will hold an auction for its store leases on Tuesday, February 16, holding liquidation sales at its 42 stores in New Jersey and three other states.
The apparel firm retails in dresses, tops, denim, swimwear, handbags, jewellery, shoes, accessories and more. Although retail associations like NRF (National Retail Federation) recently affirmed that retail sales will grow in the country, it appears that ‘ground reality’ for clothing retailers is a bit different as they have been hit by low demand for fresh attires. Even the holiday season didn’t bring any cheer for the retailers due to unprecedented weather conditions.