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Chapter 11 for Samsonite Company Stores

MANSFIELD, MA-The US retail division of Samsonite Corp. is filing a petition for relief under Chapter 11 and a pre-packaged plan of reorganization.

By Ryan Clark | Updated on September 02, 2009

MANSFIELD, MA-The US retail division of the Samsonite Corp.–Samsonite Company Stores–is filing for Chapter 11 Bankruptcy protection and a pre-packaged plan of reorganization. The company will “streamline its high street and regional mall store portfolio,” by closing roughly half of their 173 stores, according to a release. The store intends to focus its time on outlet stores, which it says have been more profitable.

Samsonite Company is estimating to be out of bankruptcy within a 45 to 90-day timeframe, utilizing the bankruptcy process to more easily exit existing, underperforming leases and begin paying back creditors. This is all being done in an effort to reduce costs company-wide, however Samsonite Corp. is not included in the Chapter 11 filing. The 45 to 90 day timeline stems from the pre-packaged plan of reorganization, which is a requirement of exiting Chapter 11. Samsonite filed this plan simultaneously with its bankruptcy filing, which will allow it to use the span of the bankruptcy to shore up expenses, close stores, then regain footing to pay back all its creditors in full and exit the bankruptcy process.

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