Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, August 31, 1995 TAG: 9508310037
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: MEGAN SCHNABEL STAFF WRITER
DATELINE: LENGTH: Medium
E&H Corp., the Richmond parent company of Lady L Bridals, has filed for bankruptcy, according to the company's attorney. The formal wear retailer closed its downtown Roanoke Lady L store in late June.
The company had filed Aug. 17 in Richmond under Chapter 11 of federal bankruptcy law, which would have involved reorganization of the business. But a possible purchase of the company fell through this month, according to the company's attorney, Bruce Arkema of Richmond, meaning the company expects to liquidate its inventory.
David's Bridals, an Ardmore, Pa.-based bridal superstore, filed a letter of intent to buy Lady L contingent on approval of the agreement by the Small Business Association and Lady L's former suppliers, Arkema said. The SBA, which had been holding Lady L's collateral, agreed to the deal but the manufacturers said they would not do business with David's because they consider the company, which produces many of its own gowns, a competitor.
As a result, the assets of Lady L and the two other companies in the E&H Corp. family, Mr. T Tuxedos and Bridal Discounters Direct, will be liquidated, Arkema said. The company reported assets estimated at $1.85 million and liabilities of $1.7 million. Asset value was based on the cost of the goods, Arkema said, and is not necessarily the amount the company will receive when it liquidates.
Nannette Shor, president of Lady L, was not available for comment Monday. The company, which had been in business for 30 years, had Lady L stores in Richmond, Colonial Heights and Virginia Beach. The Roanoke store operated for 41/2 years.
Arkema said customers who ordered dresses from Lady L and has not received them can either call the Lady L headquarters in Richmond or contact another bridal shop and ask them to get the item's order number from Lady L so that the manufacturer can reroute delivery of the merchandise.
"We are currently negotiating with various other bridal stores in the region to take over these orders," Arkema said. In many cases, he said, the amount owed by a customer equalled the amount needed by the manufacturer to complete the order. Some of these manufacturers already have agreed to ship the dresses to alternate bridal shops as soon as the customer pays the bill.
Anyone who ordered a dress after the company declared bankruptcy can get her money back, Arkema said.
|By MEGAN SCHNABEL| |STAFF WRITER|
E & H Corp., the Richmond parent company of Lady L Bridals, has filed for bankruptcy, according to the company's attorney. The formal wear retailer closed its downtown Roanoke Lady L store in late June.
The company had filed Aug. 17 in Richmond under Chapter 11 of federal bankruptcy law, which would have involved reorganization of the business. But a possible purchase of the company fell through earlier this month, according to the company's attorney, Bruce Arkema of Richmond, meaning the company expects to liquidate its inventory.
David's Bridals, an Ardmore, Pa.-based bridal superstore, filed a letter of intent to buy Lady L contingent on approval of the agreement by the Small Business Association and Lady L's former suppliers, Arkema said. The SBA, which had been holding Lady L's collateral, agreed to the deal but the manufacturers said they would not do business with David's because they consider the company, which produces many of its own gowns, a competitor.
As a result, the assets of Lady L and the two other companies in the E & H Corp. family, Mr. T Tuxedos and Bridal Discounters Direct, will be liquidated, Arkema said. The company reported assets estimated at $1.85 million and liabilities of $1.7 million. Asset value was based on the cost of the goods, Arkema said, and is not necessarily the amount the company will receive when it liquidates.
Nannette Shor, president of Lady L, was not available for comment Monday. The company, which had been in business for 30 years, had Lady L stores in Richmond, Colonial Heights and Virginia Beach. The Roanoke store operated for 41/2 years.
Arkema said customers who ordered dresses from Lady L and has not received them either can call the Lady L headquarters in Richmond or contact another bridal shop and ask them to get the item's order number from Lady L so that the manufacturer can reroute delivery of the merchandise.
"We are currently negotiating with various other bridal stores in the region to take over these orders," Arkema said. In many cases, he said, the amount owed by a customer equalled the amount needed by the manufacturer to complete the order. Some of these manufacturers already have agreed to ship the dresses to alternate bridal shops as soon as the customer pays the bill.
Anyone who ordered a dress after the company declared bankruptcy can get her money back, Arkema said.
by CNB