No Virginia, there won't be a Santa Claus for teenage girls' clothing retailer dELiA*s Inc. (DLIA) , which plans to file for bankruptcy and liquidate before Christmas.
The seller of apparel, accessories and footwear through its website, direct-mail catalogs and mall-based retail stores announced Friday it has entered into an agreement with Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC to liquidate its assets.
New York City-based DELiA*s said Hilco and Gordon Brothers will liquidate the company's merchandise and dispose of its furnishings, trade fixtures, equipment and other assets.
The sales are expected to start as soon as Friday.
The company said in the statement that it will file for Chapter 11 protection "in the very near term," but as of Friday morning, a bankruptcy petition hadn't yet been filed. DELiA*s decided to go out of business after it was "unable to find a merger partner, or obtain an acquisition or financing proposal enabling the company to remain a going-concern," the statement said.
The troubled retailer put itself on the block in September, hiring financial advisers from Janney Montgomery Scott LLC and legal advisers from Honigman Miller Schwartz and Cohn LLP to guide the strategic review, including a sale of the company after receiving inquiries from interested parties.
It also noted that it may still opt to pursue debt or equity financing options instead of an M&A deal.
The Honigman team includes Michael Ben, Donald Kunz, John Kanan and Melanie VanAntwerp.
Sources had previously told The Deal that dELiA*s was likely to file for bankruptcy protection before Christmas.