US Federal Bankruptcy Chief Judge Barbara J. Houser, approved the proposed Chapter 11 liquidation plan for Boot Town Western Wearhouse (BTWW Retail LP) at a court hearing in Dallas. The company filed for Chapter 11 bankruptcy protection on November 3, 2008 in the United States Bankruptcy Court for the Northern District of Texas. The approval of the liquidation plan was the culmination of efforts to sell assets, wind down operations and negotiate claims that will result in a distribution to general unsecured creditors of approximately 5%. The plan received overwhelming support from creditors with well over 90% voting in favor of the plan.
Alan Minker, Chief Restructuring Officer & Managing Director of Clear Thinking Group LLC, stated, “Considering the severe financial condition of the debtor when this case begin back in late 2008, and the fact that very few thought there would be any recovery available for the unsecured creditors in this case, this is a great result for the creditors. This case is an example of how the legal and business professionals in the case worked well together to secure the best results possible for all of the case constituents.”
BTWW Retail, LP was one of the nation’s leading retailers for Western lifestyle and work-related apparel and accessories. The Company operated under five leading brand names: Corral West Ranchwear, Cooper’s Western Warehouse, Boot Town, Western Warehouse, and Job Site. Also under BTWW’s umbrella were three Sergeant’s Western World stores in Texas and two Workwear Depot stores in Milwaukee, WI and Austintown, OH. The Company ran into financial difficulties due to over expansion, significant debt, reduced consumer spending, and the economic downturn, which ultimately led to the Company filing for bankruptcy protection in 2008. During the Chapter 11 process, the Debtor sold a significant number of retail stores to other retailers and liquidated the remaining assets.
The Debtor will now finalize the review of all filed bankruptcy claims and will develop a time table for distribution of the Debtor’s remaining assets. Mr. Minker commented, “We hope to have the claims process wrapped up in the next 30-60 days and begin distribution of funds to the creditors.”
The Unsecured Creditors in the case were represented by Jay Indyke and Eric Haber of Cooley Godward Kronish LLP; and Ken Simon of Loughlin Meghji + Company. The Debtors were advised by Mike Warner, David Cohen, and Alexandra Olenczuk of Warner Stevens LLP; and Lee Diercks and Alan Minker of Clear Thinking Group LLC.
