Versa Capital to operate Avenue brand after United Retail sale approval

By Jim Witters

Wilmington, Del., March 27 - Versa Capital Management, LLC plans to operate the Avenue brand of women's clothing after Versa affiliate Ornatus URG Acquisition, LLC receives court approval for its purchase of United Retail Group, Inc., according to a joint press release issued Tuesday.

"We are extremely pleased to complement our existing retail portfolio with such a well-known brand in this growing segment of women's fashion apparel," Versa chief executive officer Gregory L. Segall said in the release.

Versa named Elizabeth Williams, a former member of Charming Shoppes' leadership team and president of its Fashion Bug brand, as CEO of the new company following the closing.

Jim Smith, who is the chief financial officer of Bob's Stores, a Versa portfolio company, will become CFO of the new company.

Asset sale hearing

A hearing is scheduled for April 3 in the U.S. Bankruptcy Court for the Southern District of New York for approval of the sale to Ornatus.

As previously reported, Ornatus was the declared the successful bidder when no other bids were received by the March 20 deadline.

Ornatus agreed to pay $32.65 million of cash, up to $4.7 million of accounts payable, $2.65 million of 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.

Versa Capital Management is a private equity investment firm with $1.2 billion of assets under management.

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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