Wednesday, April 8, 2009

Love it or hate it...Joe's will liquidate

From the Oregonian:

Gordon Brothers Group, a liquidator that recently helped clear merchandise for Circuit City and several other bankrupt retailers, is expected to earn approval to buy G.I. Joe's Holding Corp. during a bankruptcy hearing Thursday, several sources said today.

John Mangan, a Joe's spokesman, said the company could not comment until after Thursday's hearing in U.S. Bankruptcy Court in Delaware.

G.I. Joe's Holding Corp., a longtime Oregon company bought in 2007 by Gryphon Investors, filed for Chapter 11 bankruptcy protection in early March. Early on the San Francisco private equity firm said it hoped to quickly restructure Joe's or sell it -- either to another company that would continue operating the chain or to a liquidator, which typically means the clearing of goods and a closure.

Lawyers for Joe's creditors have said the retailer did not receive any bids from companies willing to continue operating the chain's 30 stores and outlet location.

Fred Bruning, one of Joe's Sports landlords, confirmed today that he had heard from the company and others that the 57-year-old retailer likely would be liquidated by Gordon Brothers after the auction hearing.

"There was some hope that something could be salvaged, but it looks more and more like a pure liquidation route," said Bruning, whose CenterCal Properties owns the mall in Nampa, Idaho, where Joe's opened one of its newest stores last spring.