Holsted Marketing, a direct-marketing company whose clients include Fashion Bug, Sears, Macy’s, and Bon-Ton, filed a Chapter 11 case in the U.S. Bankruptcy Court for the Southern District of New York.
Chapter 11 will allow the company to continue normal operations while developing a reorganization plan.
“A filing of this nature is always regrettable,” said Victor Benson, Holsted Marketing president and CEO. “After careful consideration of our debt position, near-term cash flow needs, and the stubbornly sluggish economy, we’ve realized this filing process is necessary to best position Holsted for an economic recovery.”
Rosenthal & Rosenthal Inc. is acting as secured lender to the company.