Value City bankruptcy: will liquidate 66 stores

Department store Value City has filed for Chapter 11 bankruptcy due to the credit markets getting tough and a decline in consumer spending the store chain will then liquidate its remaining 66 stores.

Increasing unemployment, higher petrol prices and the overall economic turndown has destroyed Value City’s core market which is reported on the filing at New York bankruptcy court.

According to the filing in the US Bankruptcy Court for the Southern District Value City’s it’s become increasingly difficult to keep the stores stocked up as suppliers have tightened up their credit terms.

The department is knows for selling discounted electronics, home goods, shoes and apparel opened originally in Columbus, Ohio in 1917, and has been in competition with companies such as TJ Maxx and Big Lots and TJX Companies Inc’s.

Law company Willkie Farr & Gallagher LLP is representing the discount chain, and it’s said that Value City listed assets and liabilities are between $100 million and $500 million.

Source: reuters