S&K to be Liquidated by Gordon Brothers, LLC

At an auction held May 19, 2009, Gordon Brothers, LLC made the high bid to purchase the rights to liquidate S&K Famous Brands Inc.’s merchandise and close its remaining 105 stores.

Today, Bankruptcy Judge Kevin Huennekens entered the motion to sell filed by S&K approving the bid by Gordon Brothers, LLC.  The Court approved the assignment agreement executed by Gordon Brothers, LLC where they are to pay an estimated recovery of $7.3 million to S&K.  Gordon Brothers are paying 25.1 % of the retail inventory value and will be liquidating all of the locations.  To date, Gordon Brothers has no intent to purchase S&K as a going concern and are only liquidating S&K’s inventory.  As such, Gordon Brothers did not purchase the rights to S&K’s name or other intellectual property.