J. Peterman, Lexington, KY, the catalog as famous for whimsical copy as for its characterization on “Seinfeld,” will go out of business, according to wire reports. The company had been trying to remain open while finding a buyer.
A federal judge, William S. Howard, yesterday approved plans for the 12-year-old catalog to liquidate its assets and start “going-out-of-business” sales. An auction of its assets is scheduled for March 5. The company will stop accepting merchandise orders today.
Its primary secured creditor, Heller Financial of Chicago, will give the company half a million dollars to finance the liquidation. Previously, it had loaned Peterman a total of $3 million in an attempt to keep the company in business.
Peterman had been under Chapter 11 bankruptcy protection since Jan. 25. In its most recent court filing, Peterman listed $14 million in debt.
The company began to expand its retail operations last year with a plan calling for 50 stores and 20 catalog outlets. Peterman raised some $10 million to finance the planned assault on upscale malls and markets. At the end of 1998, there were layoffs, a freeze on new store openings, and, last month, filing for bankruptcy protection.
It is expected that over 400 will lose their jobs because of Peterman’s closing.
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