Deb Shops eyes RAS Management as restructuring adviser, Boates as CRO

By Kali Hays

New York, Dec. 5 – Deb Stores parent company, Deb Stores Holding LLC, asked for authorization to hire RAS Management Advisors, LLC as its restructuring adviser and to provide Timothy D. Boates as its chief restructuring adviser, according to a Thursday motion with the U.S. Bankruptcy Court for the District of Delaware.

If approved, the company asked that the hiring be retroactive to Dec. 4.

RAS and Boates will direct the company’s finance and accounting departments, manage its liquidity, assist in the development of a potential reorganization plan and oversee the direction of all company employees, according to the motion.

Boates will report directly to Deb Stores’ board of directors and its chief executive officer.

The firm agreed to an hourly or daily payment rate based on the number and location of hours worked by RAS employees.

If he works less than 10 hours in a given day, Boates will be paid $500 per hour as CRO. If a work day is over 10 hours and takes place away from the Deb Store offices, he will be paid a flat-rate of $5,000 for the day.

Other RAS employees working with Deb Stores will receive hourly pay of $325 to $350, or a daily rate of $3,250 to $3,500 if a work day exceeds 10 hours outside of company offices.

RAS also currently holds a $75,000 retainer from Deb Stores for services leading up to its bankruptcy filing.

Deb Stores is a Philadelphia-based retailer specializing in junior and plus-sized merchandise for women aged 13 to 25 that filed for bankruptcy Dec. 4. The Chapter 11 case number is 14-12676.

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