October 20, 2000
Paul Harris Files for Bankruptcy
Slow sales and liquidity problems led women's specialty retailer Paul Harris Stores Inc. to file for bankruptcy earlier this month, the company announced this week. Paul Harris has arranged for the sale of most assets of its J. Peterman Co. for $4.3 million, which is almost $6 million less than what Paul Harris paid for the company last year. Paul Harris has already sold the "intellectual property" of the J. Peterman brand to an affiliate of Schottenstein Bernstein Capital Group LLC for $700,000 and has entered into a joint venture with the group to sell its inventory. Under the agreement, the company received an upfront payment of $1.6 million and is expected to receive additional money after a count of its inventory is completed. The LaSalle National Association will provide up to $45 million in debtor-in-possession financing. Paul Harris acquired J. Peterman for approximately $10 million. The company also created a Web site for J. Peterman that has been discontinued. J. Peterman was known for its catalog, which featured upscale clothing and other products. The catalog was discontinued before the company was purchased.