United Retail Group: $32 million plus asset sale to Ornatus approved

By Lisa Kerner

Charlotte, N.C., April 4 - United Retail Group, Inc.'s sale of substantially all of its assets to Ornatus URG Acquisition, LLC was approved, according to a documents filed April 4 with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, United Retail canceled its auction and named stalking horse bidder Ornatus the successful bidder, because it received no other qualified bids by the March 20 bid deadline.

Ornatus 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, according to documents filed with the court. The company will also credit bid all or a portion of the $9.5 million secured portion of a Redcats USA, Inc. claim.

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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