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current news

Deb Shops Files Chapter 11


(Filed Under Financial and General Interest News). Deb Shops, Inc., a chain selling juniors’ apparel, lingerie, shoes, accessories and plus sizes, filed for Chapter 11 bankruptcy last week.

Senior lenders are expected to take over assets and continue operations. The transaction still requires court approval and is expected to close in September. Lee Equity Partners LLC, which purchased Deb Shops in July 2007, will receive a stake in the company and continue its support.

"This is strictly a financial restructuring of Deb Shops’ business and we foresee no impact on our operations as we proceed through this process," said Mark Hoffman, Deb Shops’ chief executive officer. "The agreement dramatically reduces our debt levels and gives Deb Shops the financial flexibility for future investment in our stores and to continue to operate as one of the nationwide specialty retailers of trend-right fast fashion at affordable prices."

Philadelphia-based Deb Shops, Inc. operates more than 340 stores in 43 states.


more Financial and General Interest News >>

Published 06-30-2011 by Katherine Rautenberg

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Deb Shops Files Chapter 11


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