Gadzooks' unsecured creditors concerned over professionals' fees

By Jeff Pines

Washington, Oct. 29 - Gadzooks Inc.'s unsecured creditors committee thinks nearly $4.8 million in professionals' fees is a lot for the Dallas-area retailer.

The company has not filed its disclosure statement and reorganization plan yet, but the committee said Gadzooks is on the verge of doing so. The committee said it is concerned the professionals' fees will continue eating away at whatever recovery the unsecured creditors might get and it wants to keep the fees under control.

The committee asked the judge in the company's bankruptcy case to hold a status conference to discuss professionals' fees going forward, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Northern Texas.

Attending the meeting, the committee wants Gadzooks' chief executive officer Gerald Szczepanski and president Carolyn Greer, both committee chairs, and the lead professional from each firm being paid by Gadzooks.

The firms being paid by Gadzooks are: Akin Gump Stauss Hauer & Feld; Glass & Associates LLP; Vinson & Elkins LLP; Riemer & Braunstein LLP; Bracewell & Patterson LLP; Lain Faulkner & Co.; PricewaterhouseCoopers; Deloitte, Financo Inc.; and Hughes & Luce LLP.

Gadzooks filed for bankruptcy on Feb. 3, 2004. Its Chapter 11 case number is 04-31486.

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