Hooker Seeks Buyers for Bonwit, Sakowitz Chains

L. J. Hooker Corp., which tried unsuccessfully to sell its B. Altman & Co. department store chain, on Thursday said it wants to find buyers for two other retailers, Bonwit Teller and Sakowitz.

The proposed sale of Bonwit Teller reverses Hooker’s previous plan to retain the century-old 16-store upscale chain.

Hooker, which is operating under bankruptcy law protection from creditors, said it has determined it would be best to seek buyers for New York-based Bonwit Teller and Sakowitz, a specialty retailer based in Houston.

Sanford C. Sigoloff, chief executive of Hooker, said that while the Bonwit Teller and Sakowitz operations have been doing better, Hooker management felt the best way to maximize returns was through a sale.

He said Bonwit Teller would be a more attractive property to potential buyers than Altman was.

“B. Altman required an investment of about $100 million to bring it to the point where it could compete,” Sigoloff said in a news release. “Bonwit Teller and Sakowitz each has markedly better physical facilities, a more focused business and an up-to-date image with its customers.”

The sale of Bonwit Teller, a wholly owned Hooker subsidiary, and Sakowitz, in which Hooker bought a controlling interest two years ago, should be completed within “a relatively short period of time,” Sigoloff said.

The Bonwit chain has its flagship store in Manhattan’s Trump Plaza and operates 15 branches scattered throughout the East, Midwest, South and West. Sakowitz’s main store is in the Post Oak Galleria in Houston, and its six other stores are mostly in Texas.

The plan to sell Bonwit Teller and Sakowitz must be approved by the U.S. Bankruptcy Court. Hooker said it is seeking the court’s permission to retain Financo Inc., a New York-based investment banking firm that specializes in retail transactions, to handle the sales.

L. J. Hooker filed for Chapter 11 protection under the U.S. Bankruptcy Code in August after its financially distressed Australian parent company Hooker Corp. was turned over to a provisional liquidator.

Last month, L. J. Hooker announced that it had not received a suitable offer for Altman and would close down six of the chain’s seven stores. A going-out-of-business sale started the day after Thanksgiving. The goal is to liquidate all inventory by Jan. 29.