Bankrupt apparel retailer gets OK for sale of store leases

Women’s apparel retailer Joyce Leslie is calling it a day.



The company announced that it has received approval from the U.S. Federal Bankruptcy Court for a sale of its intellectual property and retail store leases, along with the lease of its corporate office and distribution center.



Joyce Leslie, which operates 47 stores, filed for Chapter 11 on Jan. 9, 2016. In its filing, the retailer cited continuing sales declines over the past four years, which it credited to extreme competition in this sector, a lack of an e-commerce platform, and a shift in consumer buying patterns.



"Unfortunately we were unable to find a going concern buyer for the company, but this sale allows us to sell the rights to these retail leases and the company's intellectual property,” said Lee Diercks, chief restructuring officer of the company. “Most of the leases have very favorable lease terms, and are in good locations throughout New Jersey, New York City metro area, Long Island, Connecticut and the Philadelphia metro area.”



The company said it had previously received a "stalking horse" bid from 618 Main Street Corp. to purchase a number of store leases, the related furniture and fixtures, and its intellectual property, which will set the floor for the auction. (618 Main Street operates clothing stores under the 10 Spot banner.)



"We have received considerable interest from a number of retailers based in the Northeast for numerous locations; and we expect a robust auction,” Diercks said.



Also, the company has received interest in the lease for its corporate office and distribution center located in Moonachie, New Jersey.



The real estate lease auction has been set for Tuesday, Feb. 16, in Manhattan.