Swoozie’s files Chapter 11
Atlanta Swoozie’s filed for voluntary Chapter 11 Bankruptcy protection in the United States Bankruptcy Court for the Northern District of Georgia.
The specialty gift retailer said its decision to file was driven mainly by the underperformance of its recently acquired 13 northeastern locations and by the impact of the current economic downturn on its operating performance.
“This action is an unfortunate but necessary and responsible step to preserve value for Swoozie’s, secured creditors, vendors, landlords, additional creditors, customers, and employees in light of the ongoing challenging retail environment.” said Kelly Plank Dworkin, CEO, Swoozie’s, which operates 43 stores. “We believe our business model is sustainable in today’s world, and the Chapter 11 process will allow us to find the best alternative for all of our stakeholders.”
The company’s legal counsel is Dennis Connolly and Wendy Reingold Reiss of Alston & Bird, LLP and the company’s financial advisor is Lee Diercks of Clear Thinking Group LLC.