Edison Bros. To File for Bankruptcy
ST. LOUIS (AP) _ Severe competition and disappointing operating results will force Edison Brothers Stores Inc. to file for bankruptcy Tuesday morning, company officials said.
Edison, a national retail discount chain that sells apparel and footwear, on Monday said it is filing for bankruptcy protection in Delaware under Chapter 11 of the U.S. Bankruptcy Code. The filing will enable Edison to keep operating under a court’s supervision while it develops a plan for returning to solvency, to facilitate a restructuring or a sale of all or parts of the retail organization.
Edison officials said they have no plans to lay off workers in its stores and distribution centers, although officials said 250 positions at its headquarters had been eliminated.
Edison emerged from a previous Chapter 11 reorganization in September 1997, and a new management team took over the company in January 1998.
Edison operates Bakers and Wild Pair footwear stores, 5-7-9 junior apparel stores, Riggings, JW, Coda and Repp Ltd., Big and Tall menswear stores and Repp by Mail men’s catalog.
Shares of Edison were unchanged at 31 1/4 cents in light trading on the Nasdaq Stock Market.