Anna’s Linens Chapter 11 case conversion request approved by court

By Caroline Salls

Pittsburgh, March 31 – Anna’s Linens, Inc.’s Chapter 11 bankruptcy case was converted to Chapter 7 on Wednesday by the U.S. Bankruptcy Court for the Central District of California.

“Although on the date of its bankruptcy filing, the debtor was working on a transaction that would preserve the debtor’s going concern value through a plan of reorganization or a sale of its operations, such efforts were not successful and this case transitioned to a liquidation,” the company said in its case conversion motion filed on March 2.

“The liquidation of the debtor’s assets has substantially concluded. The estate still retains substantial claims and causes of action which may be pursued for the benefit of all creditors.”

Anna’s said its official committee of unsecured creditors asked it to request conversion of the case after various matters related to the prosecution of claims are resolved.

Anna’s Linens, a Costa Mesa, Calif.-based home decor retailer, filed for bankruptcy on June 14, 2015. Its Chapter 11 case number is 15-13008.

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