TOTOWA, NJ-The new owners of the Mandee, Annie Sez, and Afaze retail chains took over the operations of those stores this week, and so far is keeping in place the management team at the Big M company's corporate headquarters here.
Canada-based YM has completed purchased of Big M's assets for $22.5 million, according to bankruptcy restructuring officer Glenn Langberg. Big M was founded by the Mandelbaum family in 1948.
According to court records, YM will assume the leases of 93 Big M stores and consider doing so at the other 13 stores.
Langberg said that YM -which operates 600 Canadian clothing stores, and several in Florida and California – will create a new division, YM USA. The company is expected to move quickly to replenish inventory and sales at the Mandee, Annie Sez and Afaze shops, he said. YM has said it expects $2.4 million in gross profits from the Big M stores during its first year of ownership.
Last year, it was reported in bankruptcy court, Big M lost $12 million. Langberg, who heads GRL Capital Advisors of Livingston, was originally hired by hired by Big M to effect a turnaround and then, later, was appointed to oversee the bankruptcy proceedings.
Big M had cut costs and closed underperforming stores, but was slammed by the effects of superstorm Sandy which hit just before the holiday season last year, according to Langberg. "We lost power. Our systems were down. Customers couldn't get gas for something like a week. We couldn't get deliveries. The ports were shut down," he said.
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