Bankrutpcy Protection Sought By Another Orange County Retailer

May 29, 2009 · Posted by Uncategorized

The worst National and Global Economy in decades has struck another Orange County retailer.  Bankruptcy attorneys filed for Chapter 11 on behalf of Anchor Blue Retail Group, Inc., a teen retailer.

From the company’s press release:

“Anchor Blue Retail Group, Inc., parent company of specialty retailer Anchor Blue and outlet store retailer Levi’s & Dockers Outlet by MOST, today announced that the company and its subsidiaries have filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the Bankruptcy Court for the District of Delaware to enter a 363 sale process to facilitate a restructuring. The process will allow the company to quickly restructure and emerge stronger and more competitive.

As part of the filing, Anchor Blue Retail Group reached a stalking horse agreement with Levi Strauss & Co. regarding the purchase of the Levi’s & Dockers Outlet by MOST stores. In addition, the company negotiated a stalking horse agreement with nationally recognized financial institutions to purchase its Anchor Blue division in collaboration with the current senior management team. Both transactions are subject to an auction process and to approval from the bankruptcy court.

Anchor Blue Retail Group’s filing was largely the result of the significant and sustained economic downturn that has severely impacted California — its key market — and eroded the company’s profitability. The company expects to continue paying employee salaries and benefits as well as honor gift cards and store credits as usual.

‘After completing a detailed analysis of all our operations and conducting negotiations with a number of our landlords, we made the difficult but necessary decision to close approximately 50 underperforming Anchor Blue stores,’ Thomas Sands, CEO of Anchor Blue Retail Group, said.”

The Orange County retailer has Anchor Blue stores at Anaheim Plaza, Brea Mall, Buena Park Downtown, Laguna Hills Mall, The Block at Orange, Village at Orange, Westfield MainPlace in Santa Ana and Westminster Mall. At this point it is unclear how the bankruptcy will affect the operation of these stores, as they are not included in the aforementioned 50 stores to be closed.

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Bankruptcy Bill DEFEATED 51-45 in Senate

May 4, 2009 · Posted by Uncategorized

The so called bankruptcy “cramdown” bill that the Obama administration hoped would be a key part of its foreclosure prevention plan was defeated in the Senate on Thursday. Bankruptcy attorneys in Orange County and around the country had hoped that this bill would pass and provide relief for their bankruptcy clients, especially those underwater on their homes.

From CNN Money online:

“The Obama administration lost a bid to add a powerful weapon in its fight against foreclosure Thursday, after the Senate voted down a proposal to allow bankruptcy judges to modify mortgages.

The defeat left many housing advocates questioning the effectiveness of the president’s loan modification plan. The so-called cramdown provision, which would allow judges to reduce mortgage principal, would have put pressure on servicers to modify loans before borrowers file for bankruptcy.

The financial industry lobbied hard against the bill, arguing that letting judges change mortgage contracts would add instability to the market and raise interest rates. Senate Republicans and some moderate Democrats were concerned about the bill’s impact and about the growing resentment among homeowners in good standing.

The bill was defeated by a 51-45 vote. The House had passed similar legislation last month.”

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