Joyce Leslie has received approval from the US Federal Bankruptcy Court for a sale of its intellectual property, retail store leases, and the lease of its corporate office and distribution center.
Joyce Leslie, Inc. (the "Company") previously announced that it had filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York on January 9th, 2016. Lee Diercks, Chief Restructuring Officer of the Company and Partner at Clear Thinking Group LLC said, "Unfortunately we were unable to find a going concern buyer for the Company, but this sale allows us to sell the rights to these retail leases and the Company's intellectual property. Most of these leases have very favorable lease terms and are in good locations throughout New Jersey, New York City metro area, Long Island, Connecticut and the Philadelphia metro area."
The real estate lease auction has been set for Tuesday, February 16th at 10am EST, in Manhattan. Qualified bids are due by 5:00pm EST on Thursday, February 11th. The Company had previously received a "stalking horse" bid from 618 Main Street Corp. to purchase a number of store leases, the related furniture and fixtures, and the Company's intellectual property, which will set the floor for the auction. Diercks also commented, "We have received considerable interest from a number of retailers based in the Northeast for numerous locations; and we expect a robust auction. Also, the Company has received interest in the lease for its Corporate Office and Distribution Center located in Moonachie, NJ. If anyone is interested in one or more leases they can contact the Debtor's Investment Banker, Oberon Securities."
Diercks had previously said, "The Chapter 11 filing was the result of continuing sales declines over the past four years. The extreme competition in this sector, a lack of an e-commerce platform, and the shift in the consumer buying patterns have lead the Company to this point."
The Company operates a chain of 47 women's retail clothing stores located throughout New York, New Jersey, Pennsylvania, and Connecticut. Inventory liquidation sales began on February 5th in all of the stores. The Company caters to women, ages 15-35 living in urban areas, selling a variety of junior women's apparel.
