Competing Plans Allowed for Clothestime
- Share via
SANTA ANA — The judge in Clothestime Inc.’s bankruptcy case said Wednesday that he will allow the chain’s founder, current managers and a clothing company to offer competing reorganization plans.
The managers, led by Clothestime Chairman David A. Sejpal, previously had sole rights to negotiate with Clothestime’s creditors. A creditors committee had backed their plan.
Now they face competition from a plan to be proposed by Clothestime founder John Ortega II, who has said he’s ready to pour $2 million in new capital into the Anaheim company.
A third potential bidder is Museum Clothing of New York, which told U.S. Bankruptcy Judge John J. Wilson it also may offer a plan.
Sejpal replaced Ortega as the head of Clothestime after the junior women’s apparel chain filed for bankruptcy protection in December 1995. It closed 250 stores and now operates about 330.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
