Dallas Bag’n Baggage filed for Chapter 11 Bankruptcy Protection on Sunday in Texas’s Northern U.S. District Court in Dallas. It has retained Clear Thinking Group to help find a buyer for the company.
“We had some significant interest just prior to the bankruptcy petition being filed, and believe that we will have a buyer finalized in the next couple of weeks,” said Patrick Sullivan, CEO of Bag’n Baggage, which currently operates 33 stores in 10 states.
The company plans to take bids from potential bidders for all of its assets during the next 10 days, with an auction expected to be held in late May.
“We anticipate that this will be a very quick sale process, and hope to have a buyer approved by the bankruptcy court by the end of this month,” Sullivan said.
Sullivan said the company’s management spent the past year examining the business, looking for ways to strategically improve performance across all its stores.
“Over the last year, we made some very positive strides in improving our performance,” he said. “However, the impact of the uncertainty in this current economic market resulted in a downturn in our business that we simply did not have the means to withstand.”