Value City Department Stores filed for Chapter 11 bankruptcy
protection and plans to close its remaining 66 stores as it faces
declining sales and an “increasingly competitive” environment for
discount retailing. DSW Inc. is the largest unsecured creditor, with
about $4.5 million in claims, according to court documents. The claim
is being disputed.
protection and plans to close its remaining 66 stores as it faces
declining sales and an “increasingly competitive” environment for
discount retailing. DSW Inc. is the largest unsecured creditor, with
about $4.5 million in claims, according to court documents. The claim
is being disputed.
Weakening consumer spending and the tightening of credit terms by
Value City’s suppliers have hurt profitability and liquidity, the
company said in its filing in the bankruptcy court of the Southern
District of New York on Sunday. The Columbus, OH-based retailer listed
assets and liabilities of between $100 million and $500 million in its
filing.
Value City’s suppliers have hurt profitability and liquidity, the
company said in its filing in the bankruptcy court of the Southern
District of New York on Sunday. The Columbus, OH-based retailer listed
assets and liabilities of between $100 million and $500 million in its
filing.
Last week, Value City laid off hundreds of workers at its Columbus
headquarters and distribution centers. The company also announced it
was closing 7 stores. Since December of last year, Value City has
closed more than 75 stores.
headquarters and distribution centers. The company also announced it
was closing 7 stores. Since December of last year, Value City has
closed more than 75 stores.
As of Oct. 15, the company employed some 4,500 people and operated
66 stores, according to court documents. Value City grew from
Schottenstein’s, the off-price closeout retailer that originated in
Columbus nearly 100 years ago. It also owns Filene’s Basement.
