United Retail Group cancels auction; Ornatus named winning bidder

By Caroline Salls

Pittsburgh, March 21 - United Retail Group, Inc. cancelled the auction for substantially all of its assets and named stalking horse bidder Ornatus URG Acquisition, LLC the successful bidder, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to documents filed with the court, Ornatus has agreed to pay $32.65 million in cash, up to $4.7 million in accounts payable, $2.65 million in cure costs, the operational costs tied to some stores before the assumption or rejection of leases and assumed liabilities. Additionally, the company will credit bid all or a portion of the $9.5 million secured portion of a Redcats USA, Inc. claim.

The company said it received no other qualified bids by the March 20 bid deadline.

The sale hearing is scheduled for April 3.

United Retail is a Rochelle Park, N.J., specialty retailer of large-size women's fashion apparel, footwear and accessories. The company filed for bankruptcy on Feb. 1. The Chapter 11 case number is 12-10405.

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