Dec 3, 2008
B. Moss Clothing files for bankruptcy, to close stores
Dec 3, 2008
NEW YORK, Dec 2 (Reuters) - U.S. women's apparel retailer B. Moss Clothing Company Ltd filed for bankruptcy protection on Tuesday, December 2nd and said it plans to liquidate, becoming the latest retailer to succumb to the credit crisis and downturn in consumer spending.
The company is seeking court permission to begin going-out-of business sales at all of its stores on Dec. 5. and shutter most stores by the end of the year, according to court papers filed on Tuesday in the U.S. Bankruptcy Court for the District of New Jersey.
The family-run retailer, which was founded in 1939, runs 70 stores throughout the United States and employs more than 700 people, according to court papers.
B.Moss had tried to sell itself, but a potential purchaser told the company in November it was unable to get financing to complete the deal due to a lack of availability of credit, according to court documents.
The company also said it had suffered from sales declines and a failed attempt to diversify its merchandise.
It listed assets of $13 million and debts of $10.3 million.
Clothing retailers have struggled in recent months as consumers cut back on discretionary spending.
In the past few weeks apparel retailers Steve & Barry's and BTWW, which runs Western Warehouse and Boot Town stores, have sought bankruptcy protection and are closing all of their stores. Even bigger clothing retailers like AnnTaylor and Gap Inc have shuttered some of their stores this year. (Reporting by Emily Chasan; Editing by Anshuman Daga)
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