* Files for second bankruptcy in two years
* 117-store chain plans to go out of business
* Has assets of $24.7 mln and liabilities of $38.5 mln
By Tom Hals
WILMINGTON, Del., Jan 11 Apparel retailer
Anchor Blue has started going out of business sales at its 117
stores after it filed for bankruptcy on Tuesday for the second
time in less than two years, according to court documents,
Corona, California-based Anchor Blue, which also filed for
bankruptcy in May 2009, said in court documents its holiday
sales were disappointing.
The company's owner, an affiliate of private equity firm
Sun Capital Partners, had invested $3.25 million in the chain
in November to get it through the year-end sales season, but
declined to pump in any more money.
The company's chief executive, Thomas Shaw, said in court
documents that "the business was not likely to be viable and
that the best means of maximizing the value of their assets for
the benefit of creditors was to conduct an orderly
During its first trip through Chapter 11 the chain sold its
Levi's and Docker's outlets and closed about 65 of its weakest
The chain was founded in 1972 as Millers Surplus and later
Millers Outpost, which focused on selling casual men's clothing
such as Levi's jeans.
By 1989, the chain had grown to more than 300 stores in
mostly in the Southwest United States and in the 1990s it began
to adopt the Anchor Blue name.
The chain was acquired by Sun Capital in 2003 and the
private equity firm also acquired the chain after its 2009
The company currently employs 1,446, according to court
Anchor Blue and a spokeswoman for Sun Capital did not
return a call for comment.
The case is Anchor Blue Holding Corp, U.S. Bankruptcy
Court, District of Delaware, No. 11-10110.
(Editing by Andre Grenon)