Samsonite to Close 84 Stores, Run Liquidation Sales
Samsonite's retail division, Samsonite Company Stores, has filed for Chapter 11 bankruptcy protection. Bloombergreports that the retailer reported a "severe decline" in consumers purchasing travel gear. This is not surprising considering more consumers are staying at home and those traveling are traveling short distances because of the recession. Rising bag fees also have consumers limiting the number of bags they want to take on commercial flights.
The company, based in Mansfield, Massachusetts, today listed $233 million in assets and $1.5 billion in debts as of July 31 in U.S. Bankruptcy Court in Wilmington, Delaware.
"The recession has caused a severe decline in consumers purchasing travel-related goods and the company has responded to this critical situation with a substantial restructuring program," Kyle Gendreau, chief financial officer of Samsonite Corp., said in a statement.
The Bloomberg story says the judge is allowing Samsonite Co. Stores to continue operating out of bankruptcy.
The Wall Street Journalreports that Samsonite has hired Hilco to run liquidation sales at its high-end mall-based stores. 84 of these stores will close but the company's outlet stores will remain open. The going-out-of-business sales will run from September 18th to November 30th.
