Former Vestis Retail Group files plan of liquidation and disclosure

By Caroline Salls

Pittsburgh, Nov. 21 – VRG Liquidating, LLC, formerly Vestis Retail Group, LLC, filed its plan of liquidation and related disclosure statement Nov. 18 with the U.S. Bankruptcy Court for the District of Delaware.

According to the disclosure statement, the plan calls for the liquidation of the VRG debtors’ assets, which are largely limited to cash, retained causes of action and other assets that were not included in the previously reported sale.

A liquidating trust will be created under the plan to administer and liquidate all trust assets, including the remaining sale proceeds.

Under the proposed plan:

• Administrative claims, priority claims, secured claims and assumed general unsecured claims will be paid or otherwise satisfied in full;

• Holders of general unsecured claims will receive a share of liquidating trust interests, entitling them to distributions of the proceeds from the company’s assets after the payment of claims and other fees, costs and expenses required to be paid by the trust;

• Holders of subordinated claims will not be entitled to any distribution or recovery on account of those claims; and

• All equity interests will be deemed void, cancelled and of no further force and effect, and holders will receive no distribution.

Meriden, Conn.-based Vestis was formed by Versa Capital Management, LLC and operates retailers Eastern Mountain Sports, Bob’s Stores and Sport Chalet. The company filed for bankruptcy on April 18, 2016 under Chapter 11 case number 16-10971.

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