NEW YORK, Feb 18 (Reuters) - S & K Famous Brands Inc, which operates the S & K Menswear retail chain, gained bankruptcy court approval on Wednesday to begin closing 30 of its remaining 136 value-priced men’s clothing stores.
U.S. Bankruptcy Judge Kevin Huennekens approved sale procedures for the store closings at a hearing in U.S. bankruptcy court in Richmond, Virginia, court documents show.
S & K, based in Richmond, Virginia, said in court documents it hoped to begin closing the stores as soon as Thursday, saying it would lose “substantial value” otherwise.
Last week, S & K filed for Chapter 11 bankruptcy protection, pointing to losses and decreased consumer spending.
Judge Huennekens also approved procedures for the company to begin selling its headquarters building.
In the year before the company’s bankruptcy filing, S & K closed 78 stores and cut jobs as it tried to stay afloat. But merchandise vendors began demanding cash in advance as the U.S. economy declined, making it difficult for the company to buy as much inventory as it needed, S & K told the court last week.
The men’s clothing retailer has about 1,095 full and part- time employees and operates about 136 stores under the name S & K Menswear, mostly in the Carolinas and mid-Atlantic states.
S & K began in 1967 and grew to more than 200 stores.
The case is In re: S & K Famous Brands Inc., U.S. Bankruptcy Court, Eastern District of Virginia, Case No. 09-30805 (Editing by Andre Grenon)