Samsonite Co. Stores Files for Chapter 11

Samsonite Co. Stores Files for Chapter 11
September 03, 2009

Mansfield, Mass.-based Samsonite Co. Stores LLC, the U.S. retail division of luggage-maker Samsonite Corp., has filed for Chapter 11 bankruptcy protection and announced plans for a reorganization. “The recession has caused a severe decline in consumers purchasing travel-related goods and the company has responded to this critical situation with a substantial restructuring program,” said Kyle Gendreau, secretary and treasurer of Samsonite Co. Stores and CFO of Samsonite Corp. The company also said it plans to streamline its high street and regional mall store portfolio, and concentrate its activities in the more profitable outlet-store business, resulting in a significant reduction in the number of its operating stores. The company anticipates exiting from bankruptcy within 45 to 90 days. Samsonite Co. Stores’ reorganization is part of Samsonite Corp.'s global restructuring, which is not included in the Chapter 11 filing. Samsonite Co. Stores, which leases and operates 173 stores in the United States, said that the Chapter 11 case, halving its store count and streamlining of its operations will help return the company to profitability on a sustainable basis.