Regional retailer Hackett's to file for bankruptcy

By Santosh Nadgir

BANGALORE, Nov 10 (Reuters) - One of the oldest retailers in the United States, Hackett's Stores Inc HCKE.PK, said it would file for Chapter 11 protection in a New York bankruptcy court on Tuesday.

Herbert Becker, the company's chief operating officer, told Reuters that gigantic payables and excessive expansion undertaken by the previous management were the primary reasons behind the decision to file for protection from creditors.

"We had turned it around," Becker said. "Unfortunately, a couple of wildcat creditors decided that they wanted to pull the plug."

Becker added that his only choice was to take the company into Chapter 11 protection.

Seaway Valley Capital Corp SWVL.OB, which holds a majority stake in Hackett's, was not immediately available for comment.

Becker said he hopes the company will exit bankruptcy protection this year.

Hackett's, a full-line department store specializing in name-brand merchandise and full-service hardware, began in 1830 as a hardware store in upstate New York.

It currently operates four stores in New York state and has about 100 employees, Becker said.

Smaller department stores such as Gottschalks Inc (GOTTQ.PK), which filed for bankruptcy in January, have been particularly hard hit as they struggle to compete against bigger players like Wal-Mart Stores Inc (WMT.N) and Macy's Inc (M.N). (Reporting by Santosh Nadgir in Bangalore)