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Chicago Clothes Retailer Files For Third Bankruptcy Proceeding

Posted on in Bankruptcy

Mark Shale, one of Chicago's oldest specialty retailers, has filed for Chapter 11 bankruptcy, says a story in the Chicago Tribune. If the company fails to find financing or a buyer, liquidation is a possibility, they told the Tribune.

The documents submitted to the Bankruptcy Court for the Northern District of Illinois said that declining sales and the overall economic downturn have been detrimental for the company's overall business. The documents suggested that sales at the 83-year-old retailer have dropped about 60 percent in its last fiscal year.

The company was unable to fullfill their orders for fall merchandise because of a cash shortage, and before filing for bankrupcy, they tried to raise new capital, unsuccessfully. All of Shale's efforts to turn sales around have failed, and Maria Pinto, who has designed clothes for Oprah Winfrey and Michelle Obama, is also leaving her position as women's creative director.

This Chapter 11 filing will be the third for Mark Shale. In 2009, they sold their out-of-state stores and closed an outlet. The company received financial help from JOB Investments LLC that same year, and Shale also went through court-supervised reorganization in 1995. President and Chief Financial Officer Richard Myers said a reorganization filing was the best alternative for the company at this time.

If your company is planning to file or going through a Chapter 11 bankruptcy, or you are contemplating whether you need to file for bankruptcy in your personal life, make sure you have a professional to help you. Bankruptcy is complicated, but an experienced bankruptcy attorney can help you determine the best course of action for your case. Make sure you have the help you need, and contact our skilled Cook County bankruptcy lawyers today.

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