Daffy’s, Discount Retail Chain, Files for Bankruptcy Protection
Daffy’s Inc., the 19-store chain selling discount designer brands in the U.S. Northeast, filed for bankruptcy court protection after saying it would shut down because of weak consumer spending.
The Secaucus, New Jersey-based company listed assets of as much as $100 million and debt of as much as $50 million in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Manhattan. Daffy’s said July 16 in an e-mailed statement that it would close stores and liquidate merchandise during the next few months.
Daffy’s joins Syms Corp. (SYMSQ) and its Filene’s Basement LLC affiliate in bankruptcy. The two clothing chains filed for bankruptcy in November as consumer spending dropped and competition from discount retailers increased.
Daffy’s traces its roots to 1961 when Irving Shulman opened a store called Daffy Dan’s Bargain Town in Elizabeth, New Jersey, according to the company’s website. The retailer has locations in New York, New Jersey and Philadelphia and about 1,300 employees as of July 15.
The company’s bankruptcy petition was filed by lawyers at Weil Gotshal & Manges LLP.
The case is In re Daffy’s Inc., 12-13312, U.S. Bankruptcy Court, Southern District of New York (Manhattan).