Fortunoff Holdings asks court to convert bankruptcy case to Chapter 7

By Caroline Salls

Pittsburgh, Aug. 18 - Fortunoff Holdings, LLC has asked the U.S. Bankruptcy Court for the Southern District of New York to convert its Chapter 11 bankruptcy case to Chapter 7 for liquidation, according to a Monday court filing.

The company said its assets and inventory have been sold, all of its retail leases have been rejected and its workforce has been reduced to a "skeletal staff" of a few employees who are carrying out administrative tasks.

Fortunoff said all that is left to be accomplished to maximize value for creditors is to prosecute potential causes of action, which can be done by a Chapter 7 trustee.

A hearing is scheduled for Sept. 10.

Fortunoff, a Uniondale, N.Y., fine jewelry and home furnishings retailer, filed for bankruptcy on Feb. 3, 2009. Its Chapter 11 case number is 09-10497.

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