Vanity Shop of Grand Forks, Inc.

Vanity Shop of Grand Forks entered chapter 11 on March 1, 2017 in North Dakota as a wind-down case for a Fargo-based young women’s apparel chain, listing $50,001-$100,000 in assets against $10-$50 million in liabilities and 1-49 creditors. CFO Jill Motschenbacher said the company operated 137 mall-based stores in 27 states plus Vanity.com, generated about $80 million of sales in the 12 months ended December 2016, and employed 274 full-time and 1,049 part-time retail workers. The debt stack included roughly $4.3 million owed to Wells Fargo, about $5.0 million to subordinated lender TGC, L.P., more than $5.7 million of unsecured debt, and $650,000-$775,000 of unremitted taxes source filing source filing.

The court confirmed the debtor’s Third Plan of Liquidation on August 27, 2018, setting September 26, 2018 as the effective date, appointing Phillip L. Kunkel as plan administrator, and leaving equity out of the money. Wells Fargo had been paid in full during the case; convenience claims of $1,500 or less receive 50%, and general unsecured creditors share remaining proceeds after administrative, priority, secured tax, and convenience claims. The plan completes the retail liquidation launched with Tiger Capital Group store-closing sales that began March 2, 2017, shifting the case from operating wind-down to claims administration and residual asset recovery work source filing source filing.