Finlay Receives Two Bids Before Possible Bankruptcy Filing

Finlay Enterprises Inc. received two bids in advance of a potential bankruptcy filing, according to Bloomberg News.

Versa Capital Management Inc., a Philadelphia-based private-equity firm, and a group of liquidators have reportedly submitted offers to buy the New York-based company out of bankruptcy.  Bloomberg says Finlay may file by next week. 
Finlay lost $28.7 million in the quarter ended May 2, after posting a $107.3 million loss in the year ended Jan. 31, according to filings. It had $754.3 million in sales last year. 

Finlay failed to make a $1.7 million interest payment on its Senior Notes in July – which constituted a default under the indenture governing the Senior Notes and its Revolving Credit Agreement.

Finlay has previously said that there was “substantial doubt about [its] ability to continue as a going concern” and announced that it was launching a formal process to sell its assets. In February, it announced it was exiting its long-standing department store business.

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