dELiA*s Liquidates Ahead of Likely Chapter 11 Filing

dELiA*s, Inc., a multichannel fashion retail company primarily marketing to teenage girls, has entered into an agency agreement with Hilco Merchant Resources, LLC and Gordon Brothers Retail Partners, LLC, dated Dec. 4, 2014, to, among other things, liquidate all merchandise owned by the company and to dispose of certain furnishings, trade fixtures, equipment and improvements to real property with respect to the company's stores. Sales of merchandise under the agreement may begin as early as Dec. 5, 2014.

The company anticipates that it will file for Chapter 11 bankruptcy protection in the very near term and will seek, among other things, the bankruptcy court's approval to close all existing stores and distribution centers and to conduct store closing and going out of business sales. dELiA*s determined to take this action after being unable to find a merger partner or obtain an acquisition or financing proposal enabling the company to remain a going-concern. The retailer will provide more details in the near term about the plans for its bankruptcy proceedings, the liquidation of the stores and other assets, the status of the its operations during bankruptcy, and the terms of the agency agreement.

dELiA*s does not anticipate any value will remain from the bankruptcy estate for the holders of its common and preferred equity, although this will be determined in the anticipated bankruptcy proceedings.
This ad will auto-close in 10 seconds