No Cash for Shareholders If Clothestime Reorganizes

Clothestime shareholders won’t be receiving any cash or other property if the troubled junior women’s apparel chain is able to complete a planned reorganization through bankruptcy court, the company said Thursday.

The company didn’t offer any additional explanation of what rights shareholders would have if an anticipated reorganization plan is approved by U.S. Bankruptcy Court Judge John J. Wilson. Clothestime stock, which was delisted last year by Nasdaq, now trades over the counter. The company’s most recent share price was 21.9 cents.

Clothestime and its creditors committee have been granted exclusive rights to develop a reorganization plan. But after March 31, other investor groups would be able to propose a plan.

Clothestime Chairman David A. Sejpal has said the company’s options include finding an investor group or selling the company to an outside party.

In a related development Thursday, Clothestime said Barry Herman was named chief merchandising executive. Herman previously served as an executive with the Sycamore Stores chain.

Clothestime also said Douglas L. Pereira, formerly corporate controller, was named senior vice president, chief financial officer, treasurer and secretary. Robert Klausner, formerly director of store operations, was named vice president of store operations. Pereira and Klausner also were named to the company’s board.