Deb Shops, trendy junior and plus size women’s clothing retailer has filed plea for bankruptcy protection in a Delaware court. It is part of a financial restructuring that involves selling the company to a group of senior lenders. As of April 30, 2014, Deb Shops had total assets of US $ 124.4 million while liabilities of US $ 270.1 million. The present management team will continue to run the Deb Shops business, and its 318 stores across the US will remain open. Mark Hoffman, CEO of the company said, “This is strictly a financial restructuring of Deb Shops’ business and we foresee no impact on our operations as we proceed through this process.” Abelco Finance made the initial bid on the company assets. Lee Equity will also receive a stake in the company going forward. Both the companies will pay US $ 77 million in cash and take over Deb Shops’ US $ 21.7 million debt and other liabilities, according to court papers.
