Swoozie's going out of business

Atlanta-based gift and stationery chain Swoozie's - which has two Charlotte-area stores, at SouthPark's Morrison and at Blakeney - is going out of business. 

The nine-year-old company sought Chapter 11 bankruptcy protection earlier this month and is liquidating after failing to find a buyer that would keep its 43 stores operating. Instead, Hilco Merchant Resources, a suburban Chicago company that has also helped shut down Circuit City and Blockbuster stores, among others, bought Swoozie's assets for $7.43 million. (They have a retail value of more than $18 million.) At the time of the bankruptcy filing, Swoozie's blamed its financial woes on the recession and the poor performance of 13 stores it had acquired in the Northeast.

If you're interested in sending the chain a sympathy card - or stocking up on other greetings - take heed: Closing sales are now in progress, with all in-stock merchandise on sale at up to 30 percent off, Hilco said in a news release. 

In a letter posted on the company's Web site, Swoozie's founder Kelly Plank Dworkin expressed disappointment at the outcome: "This isn't just a business for me," she wrote. "This is my life, my family and my passion....Although I am so sincerely sorry for any pain or hardship this situation is causing, I will always appreciate and hold dear the people and the experiences that Swoozie's has introduced along the way. I am a woman of faith, I am confident that this has a larger purpose that will one day make sense."

Swoozie's files for bankruptcy

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.