Bankruptcy Court Approves Clothestime Financing Deal
SANTA ANA — Clothestime Inc. received Bankruptcy Court approval Tuesday for a $40-million financing package, enabling the Anaheim-based women’s clothing chain to continue operating while it reorganizes under Chapter 11 of the U.S. Bankruptcy Code.
The financing, which was approved without any objection from creditors, was extended by CIT Group/Business Credit Inc.
Clothestime, which owns and operates 400 stores in 21 states and Puerto Rico, is planning to close 137 outlets.
John Ortega II, Clothestime’s chairman and chief executive officer, said the $40-million financing lays the foundation for a successful restructuring by providing enough resources to pay vendors and meet other costs.
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