Lechters Files for Chapter 11 Protection
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Housewares retailer Lechters Inc. said it filed for Chapter 11 bankruptcy protection and has arranged for $86 million in financing as it struggles to restructure its debt and revamp its business.
Lechters’ bankruptcy comes at a time other housewares retailers are doing well, said Eric Jemetz, an analyst with New Amsterdam Partners in New York.
In February, Lechters said it would close stores and lay off about 725 employees, or 30% of its work force, to trim expenses as it switched its business focus to sales of higher-quality kitchen products in a drive to return to profitability.
Lechters said all its stores are open as usual, employees will continue to be paid and their health benefit plans will not be disrupted. Shares of the Harrison, N.J.-based company fell 12 cents to close at 10 cents in over-the-counter trading.
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