Plus-size women’s apparel retailer United Retail Group, which owns the Avenue brand, today announced that it filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York and plans to sell the company.
United Retail Group has entered into an asset purchase agreement with private equity firm Versa Capital Management. Versa Capital will serve as the stalking horse bidder during the court-supervised auction of the business, pursuant to section 363 of the Bankruptcy Code.
United Retail Group listed assets of $117.2 million and debt of $67.3 million in Chapter 11 documents. The Company has 433 stores in 37 states. Redcats USA bought the United Retail Group for $198.9 million in September 2007.
United Retail Group has arranged a $40 million debtor-in-possession facility from its existing lender, Wells Fargo, to provide sufficient working capital for Avenue to continue to operate the business as usual.