Quality Stores "evaluating options" after involuntary bankruptcy

New York, Oct. 22 - Quality Stores, Inc. said it is "evaluating its options" after noteholders filed an involuntary bankruptcy petition Saturday.

The Muskegon, Mich. company added that the petition was filed in the United States Bankruptcy Court for the Western District of Michigan in Grand Rapids, Mich. by a group of holders of its 10 5/8% senior notes due 2007.

The noteholders behind the filing are funds managed by Triton Partners LLC, Pacholder High Yield Fund, Inc. and Conseco Capital Management, Inc.

Quality Stories added that "it is evaluating its options as it determines how to continue with the financial and business restructuring that has been ongoing for several months."

In announcing their action, the noteholders pointed out that the company failed to make its $5.8 million interest payment on Oct. 1. Subsequently, they said they formed a committee to facilitate negotiations.

They said they took the decision to file for bankruptcy "in light of concerns that the company was taking significant operating steps without providing adequate information to the committee." Chapter 11 was needed to protect their interests, they added.

Quality Stores, a retailer of farm and agriculture-related merchandise, also announced Monday it intends to close 133 stores, most of them west of the Mississippi River, so it can concentrate on its core markets in the Midwest and East.

End

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.