It seems as though Vann's will not be emerging from bankruptcy after all...
By Alan Wolf On Sep 24 2012 - 3:50pm
Missoula, Mont. – Vann’s, the 51-year-old A/V and majap chain, will begin liquidating its assets next month after failing to obtain sufficient funding to emerge from bankruptcy.
The Montana-based chain filed for Chapter 11 protection on Aug. 5, but could not convince lenders to extend an additional $3 million to $5 million, which recently named CEO Jerry McConnell deemed necessary to keep the business afloat.
“We’ve reached the point where we have to admit we can’t make this work in today’s economy,” McConnell said in a statement.
Vann’s informed the U.S. bankruptcy court in Butte, Mont., of its plans last Wednesday, and has given employees a 60-day layoff notice.
“Our analysis shows that the company might have been able to make it, but only with an infusion of an additional three to five million dollars, which just isn’t in the cards,” McConnell said. “We looked at other scenarios, too … but the way our sales have been falling off lately those strategies didn’t pencil out.”
A restructuring team is developing wind-down and sale alternatives which will be presented to the bankruptcy court by the first week of October. Going-out-of-business sales are likely to begin soon after, the company said.
McConnell told the local Missoulian newspaper that inventory will likely last through November, after which all stores will be closed.
