Business & Tech
VA Retailer Files For Bankruptcy, 38 Stores Affected
A Virginia retail chain filed for bankruptcy, telling the court it hopes to recoup its losses during the upcoming holiday shopping season.
The companies behind Banners Hallmark Shop, which operates 38 Hallmark-licensed retail stores across Virginia, filed for Chapter 11 bankruptcy on Sunday, according to court documents.
Banners of Abingdon LLC and its debtor affiliates hope to improve cash flow during the upcoming holiday shopping season.
Banners owed a total of about $17.7 million to its 20 largest creditors, according to its filing with the U.S. Bankruptcy Court of the District of Columbia. Parent company LBPO Management LLC also reported $10 million to $50 million in both assests and liabilities.
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Banners and its debtor affiliates operate 38 locations across Virginia:
- Reston
- Dulles Town Center
- Fair Oaks
- Ashburn
- Gainesville
- Warrenton
- South Riding
- Stafford
- Oakton
- Bradlee Center
- Fair Lakes
- Woodbridge
- Williamsburg
- Newport News
- Commonwealth Midlothian
- Village Marketplace Midlothian
- Fairfield-Virginia Beach
- Hilltop-Virginia Beach
- Central Park Fredericksburg
- Cosner's Corner Fredericksburg
- York River
- Lynchburg
- VA Valley Mall
- Apple Blossom Mall
- New River Valley Mall
- Greenbriar Market Center
- Columbus Village East
- Burke
- Kamp Washington
- Suffolk
- Suffolk II
- Henrico
- Waynesboro
- Roanoke
- Rocky Mount
- Charlottesville
- Kingstowne
- Leesburg
"As the third quarter nears a close and the holiday season rapidly nears, the Debtors are electing to undertake the hard work of reorganizing through chapter 11," according to a motion to pay pre-petition employee wages filed on Tuesday. "They enter bankruptcy enormously optimistic about the fruits the process will ultimately bear and genuinely eager to seize upon the retail opportunities that each day brings. They also enter bankruptcy acutely aware of the integral role they play in the communities they serve, not just as employers and bedrocks of the business ecosystem but, too, as retailers bearing iconic merchandise that delivers immeasurable joy to consumers and their families."
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Banners also sought the court's permission to pay all of its employees wages prior to its Chapter 11 filling, minus any accrued bonuses.
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