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Entries in Vann's (7)

Wednesday
Oct032012

Vann's gets additional month to work on possible sale

(MISSOULA)- With a court-appointed trustee keeping tabs on things, creditors have agreed to give troubled electronics and appliance retailer Vann's another month to work out a possible sale. 

Vann's is in the middle of a Chapter 11 bankruptcy proceeding, as it struggles to re-bound after being hammered by the recession and changing trends in the retail marketplace. 

The extension came after the parties met for another hearing in U.S. District Court on Tuesday. Creditors, who had been pushing for conversion of the case to a Chapter 7 proceeding with immediate liquidation, agreed to give Vann's additional time to try and work out a possible sale to new owners. The company hasn't identified that investor, but said this week a Bozeman party was interested. 

The court ordered the use of a trustee, who will monitor the company's operations in the coming weeks.

Without the reprieve, Vann's had said it would be forced into liquidation and closing its operations statewide before the holiday shopping season. 

 

Thursday
Sep202012

Vann's to close, layoff employees

KPAX TV photo by Dennis Bragg(MISSOULA)- The CEO of Vann's appliance stores says the continued slide in sales, and an erosion of creditor confidence is what foreced the decision to close the Montana-based store in a few weeks.

Vann's filed for bankruptcy in August, hoping to re-organize its debts in an effort to rebound in the competitive appliance and home electronics business.

But CEO Jerry McConnell tells KPAX TV slumping sales headed into the holiday season undermined the confidence of the company's creditors, and are forcing Vann's to take more immediate action. Yesterday the company sent a letter to employees notifying them of layoffs in November. That impacts about 150-employees at stores in Missoula, Kalispell, Billings, Hamilton and other markets across the state.

McConnell says Vann's is considering its next move to either sell to someone else or liquidate. 

Vann's had filed a Chapter 11 bankruptcy proceeding. But this week GE Commercial, one of the major creditors, asked the court to convert the case to Chapter 7, which would involve liquidation with a court-appointed trustee. In court documents, GE Commercial said it was concerned about the company's negative cash flow headed into the important holiday season. A hearing on that request is set for next week in Missoula. 

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