One-time cataloger and retailer Montgomery Ward & Co.’s 250 stores will be up for bid at a U.S. Bankruptcy Court auction, according to published reports. Department store chains are the major bidders.
Wards and a committee of its unsecured creditors approved the deal, which involves a partnership lead by Kimco Realty Corp., New Hyde Park, NY. The auction is expected to bring in more than $450 million.
In a separate development, former Wards workers have agreed to reduced payments for severance and unused vacation time. Teamsters Local 743 agreed to take 40%, least their might be nothing left of the expected $450 million once the bankrupt company paid off its unsecured creditors.
However, the workers would be paid the as much of the balance of their negotiated settlements as possible with any surplus funds.
