Fortunoff granted bankruptcy dismissal

Fortunoff’s appeal to the court to dismiss its Chapter 11 bankruptcy case has been approved by a New York court, as reported by Reuters. Fortunoff was bought over by NRDC Equity Partners, which owns Lord & Taylor department store chain.

Fortunoff had arrived at an agreement with its creditors, upon which it made its appeal in the court. The company was in debt worth over $19 million. With the dismissal, liens against Fortunoff's property have been removed, which allows lenders to access the company's remaining assets. The junior lenders will in return pay $850,000 to the company’s wind-down reserve, which will pay bankruptcy-related administrative expenses. This has been done keeping in mind the safety of the 3,000 employees and the stores.