Jan 7 The owner of the 129 Mandee, Annie Sez and
Afaze women's clothing stores filed for bankruptcy after
Superstorm Sandy cut into the New Jersey-based company's sales
and derailed its turnaround.
The company, Big M Inc, which caters to young women with its
Mandee stores, was forced to close many locations for a week
after Sandy cut through the New York City metropolitan area on
The company also placed blame for its bankruptcy filing on
its insurer for not promptly paying its claims related to the
storm, according to court documents.
New York and New Jersey are still recovering from one of the
costliest U.S. storms and paying for the massive clean-up has
become a hot-button political issue.
Big M launched a restructuring in 2011 of its operations,
which have been hit by the sluggish U.S. economy. The company
had closed approximately 27 stores, according to documents filed
with the U.S. Bankruptcy Court in Newark, New Jersey.
To finance its bankruptcy, the company will ask for court
approval to borrow up to $13.2 million from Salus Capital
Big M was founded by Leon, Max and Bernard Mandelbaum after
their return from World War II. The company remains a family
The company anticipates gross revenues for the year to
January 26 of approximately $192 million, according to court
documents. It listed both assets and liabilities of between $50
million and $100 million in court records.
It employs 1,200 full-time and part-time employees.
The case is Big M Inc, U.S. Bankruptcy Court, District of
New Jersey, No. 13-10233