New York City Value City Department Stores Sunday filed for Chapter 11 bankruptcy protection, citing the slowing U.S. economy and tightened credit terms, according to court filings. Court papers said the chain intends to pursue a liquidation of its assets.
In its filing in the bankruptcy court of the Southern District of New York, the chain said sliding consumer spending and the tightening of credit terms by its suppliers have hurt profitability and liquidity.
The Columbus, Ohio-based retailer listed assets and liabilities of between $100 million and $500 million in its filing. Shoe retailer DSW Inc. is the largest unsecured creditor, with about $4.5 million in claims, according to court documents, Reuters reported. The claim is being disputed.
Value City has been ailing for some time, and has closed more than 75 stores since last December. As of Oct. 15, the company employed some 4,500 people and operated 66 stores.