RICHMOND, Va. (AP) ó Menswear chain S&K Famous Brands Inc. filed for Chapter 11 bankruptcy protection on Monday, citing operational losses over the past year.
The Richmond, Va.-based chain, which sells value-priced clothing in about 136 stores throughout the East Coast and Midwest, also attributed the move to difficulties plaguing many retailers, including tightening credit and slowed consumer spending.
S&K stores, mainly in strip malls, offer menís suits, sportcoats, pants, shirts, ties and shoes for sale and tuxedoes for rent.
S&K, which has about 1,095 full- and part-time employees, said it had $41.4 million in assets and $35.5 million in liabilities as of Jan. 1, according to its initial filings. Its biggest creditors include GMAC Financial Services, which it owes $2.28 million, and construction company Allegheny Design Management, which it owes $1.14 million.
The company experienced its first annual loss in its 38-year history in fiscal 2007, of about $3.93 million, Richard H. Hardy Jr., the companyís vice president of finance and information technology, said in court documents. The company went on to lose money in the first three quarters of 2008 as well.
ěDespite a tremendously loyal cadre of longtime customers and a world-class team of talented employees, the company has experienced a liquidity crisis which requires that it complete its operational and financial restructuring in Chapter 11,î Hardy said.
Under bankruptcy protection, Hardy said, the company aims to liquidate underperforming stores and cut expenses by rejecting some leases and contracts.
In late 2008, S&K announced several initiatives to improve its financial performance, including hiring liquidators to conduct store closing sales at 78 locations and cutting about 50 positions at its headquarters. It also hired Alvarez and Marsal LLC as strategic advisers and announced plans to move store locations, reduce inventory and redesign its stores.
The publicly held company was delisted from NASDAQ in March 2005 and has been trading the over the counter since.

On the Net:
S&K: http://www.skmenswear.com/