Quality Speeds Up Store Closings

In October, Quality Stores announced a group of three bondholders filed an involuntary bankruptcy petition demanding payment for certain debt obligations. The company also previously announced its intent to close 133 stores and two distribution centers.

Now the company expects all of its stores to be closed by March 31. The company closed or sold approximately 170 stores during 2001.

A joint venture that included Great American Group, Gordon Brothers Retail Partners, DJM Asset Management, and Tractor Supply Company was awarded the sale of the company's assets at the 176 core stores at an auction held in New York last month.

The joint venture will manage the closing of these remaining stores.

Following the store closings, the company will dispose of any assets not already sold and settle the estate's claims over a longer period of time, according to Ted G. Britton of the company. The company anticipates a liquidating Chapter 11 plan of reorganization within the next month, Britton adds.