Atlanta-based Swoozie's, which sells festive, colorful stationery and gifts at 43 stores, including two in Charlotte - at Blakeney and Morrison - has filed for Chapter 11 bankruptcy protection. Chapter 11 filings traditionally allow businesses to keep operating while they shed debts and reorganize. However, Reuters reports that Swoozie's trying to sell itself to a buyer or liquidator by the end of the month, citing the inability to refinance or repay its debt.
The company has 43 stores in 15 states and 350 employees, according to reports. It has less than $10 million in assets and between $10 million and $50 million in debt, according to the filing, and has taken a financial hit since buying 13 stores in the Northeast that have underperformed.
The overall recession has also contributed, the Atlanta Journal-Constitution reported. A company spokeswoman told the paper it is unclear how many stores may close as part of the reorganization, but Swoozie's locations currently are operating normally.