Former Wilkes Bashford Company Asks Court to Convert Bankruptcy to Chapter 7, Remaining Unsecured Creditors Likely to Receive Less than 1% Recovery


TWBC, Inc. recently filed a motion asking the bankruptcy court in San Francisco to convert its chapter 11 bankruptcy case to chapter 7. The company was formerly known as The Wilkes Bashford Company and operated a chain of high-end luxury retail stores in Northern California for over 30 years. However, Wilkes Bashford's sales fell in 2008 and 2009, which resulted in a November 2009 bankruptcy filing.

After the bankruptcy filing, Wilkes Bashford quickly completed a sale of substantially all of its assets to Ed Mitchell West, LLC. The proceeds of that sale satisfied the claims of Wilkes Bashford's senior secured creditor, Comerica Bank. Since that time, the debtor and its Creditors' Committee have been attempting to liquidate and recover the few assets that were left following the sale and reaching settlements with other secured creditors. According to Thursday's motion, Wilkes Bashford "has no further remaining valuable assets that it or the Committee can liquidate in a cost-effective manner for the benefit of the estate."

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