(Press Release) - Norstan Apparel Shops, Inc., which does business under the name of "Fashion Cents", announced today that it has entered into an agreement to sell substantially all of its store locations, inventory and other assets to Fashion Cents Acquisition, LLC, for approximately $14 million in cash plus the assumption of more than $12 million of operating lease liabilities, in a transaction that must still be approved by the Bankruptcy Court and the company's major creditors. -Avalon Group, Ltd. is representing Fashion Cents Acquisition, LLC in this transaction.
Norstan is a leading fashion retailer of women's apparel and accessories to low and middle income consumers. The company operates approximately 230 stores under the "Fashion Cents" name in 20 states in the South, Midwest and Mid-Atlantic regions.
Norstan has been operating under Chapter 11 of the Bankruptcy Code since April 8, 2005. Abacus Advisors has been assisting Norstan in the process of locating an acquisition partner and has conducted extensive marketing efforts which will culminate in an auction to determine whether other parties, individually or in the aggregate, are willing to pay more than the current proposal.
"The proposed acquisition, which is subject to higher and better offers, is certainly the best option currently available to Norstan," observed Alan Cohen, chairman of Abacus. "The deal will provide cash to creditors, jobs for employees, and a continued presence of "Fashion Cents" stores in most of the communities they currently serve," continued Mr. Cohen.