Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, March 19, 1992 TAG: 9203190062
SECTION: BUSINESS PAGE: B-5 EDITION: METRO
SOURCE: Associated Press
DATELINE: NORFOLK LENGTH: Medium
Shore Enterprises Inc., owned by J. Duncan McDuff, is prepared to pay $1.9 million for store leaseholds, inventory and real estate owned by Hofheimer's, according to documents filed in U.S. Bankruptcy Court in Norfolk.
Shore Enterprises also is ready to start managing Hofheimer's operations before an asset sale takes place and to lend the company $3 million, the documents indicated. Of that amount, $1 million would be used to pay back unsecured creditors, such as shoe suppliers. The other $2 million would be used to continue running the company, court filings said.
Norfolk-based Hofheimer's has been a victim of the recession and a leveraged buyout that left it with a huge debt burden. The company last week closed one of its four Roanoke Valley stores, The Bootery children's shoe store at Tanglewood Mall.
In its bankruptcy filing March 9, Hofheimer's listed $8.8 million in assets and $30 million in liabilities. The company cost $29 million when it went through a leveraged buyout in 1988.
Under the proposed agreement, other investors would be able to bid on Hofheimer's assets, but Shore Enterprises would get a chance to make a higher offer.
McDuff was unavailable for comment Wednesday. His secretary said he was on vacation and would return next week. Aubrey Layne, president of the Norfolk- based Hofheimer's, was in a meeting and did not immediately return a call.
Hofheimer's has said that it could face extinction if U.S. Bankruptcy Judge Hal J. Bonney does not approve the deal.
"In the opinion of the debtor, its business operations will cease if the management agreement is not approved by the court," court documents said. Bonney will review the proposal at a hearing March 30.
by CNB