Retail consulting firm LakeWest files for bankruptcy
NEW YORK, June 26 (Reuters) - LakeWest Group, an independent management consulting firm to retailers, filed for bankruptcy on Friday, according to court documents, becoming the latest player caught in the declining wave of consumer spending.
The company, whose client list includes Macy's (M.N) and Coldwater Creek Inc (CWTR.O), filed for Chapter 7 bankruptcy in U.S. Bankruptcy Court in Delaware.
Under U.S. bankruptcy rules, Chapter 7 bankruptcies result in liquidation or a sale of assets rather than a reorganization, which is typical the Chapter 11 process.
The U.S. retail sector has been hammered by the recession as consumers cutback spending.
Many retailers have filed for bankruptcy in the past year including some of the companies on LakeWest's list such as Eddie Bauer EBHI.O, Circuit City (CCTYQ.PK) and Linens 'N Things. Circuit City and Linens 'N Things have been liquidated.
In documents filed with the court, Cleveland, Ohio-based LakeWest listed assets of $100,000 to $500,000 and debt of $1 million to $10 million.
The case is In re: LakeWest Group LLC, U.S Bankruptcy Court, District of Delaware, No.09-12190. (Reporting by Santosh Nadgir in Bangalore, Additional reporting by Caroline Humer in New York))
