NEW YORK–Fortunoff, which filed for bankruptcy protection last week for a second time, asked the court for “authority to sell all or substantially all” of its assets, according to a court filing. It also sought “approval of certain procedures for the solicitation of bids and the conduct of an auction with respect to the sale.”
Fortunoff is reserving the right to identify a stalking horse—or lead bidder—before the auction, the court filing said.
Fortunoff outlined a few scenarios, including the sale of all or some of its assets as a going concern; the liquidation of all or any portion of its assets other than as a going concern; or a store closing liquidation, according to the court filing.
An auction is scheduled to be conducted on Feb. 23 at the offices of Sidley Austin LLP in New York. A sale approval hearing is scheduled to be held on Feb. 24.
Fortunoff said earlier this week that NRDC Equity Partners, the private-equity firm that bought the retailer a year ago, is in talks with interested parties to buy the business.