Hills Department Stores Inc., the nation's fifth-largest discount retailer, filed for protection from its creditors yesterday after failing to gain approval from banks and bondholders for a financing plan.
Hills, which is based in Canton, Mass., and some of its affiliates made the filing under the Chapter 11 provisions of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.
Hills operates more than 200 stores in 14 states, mostly in the Midwest, selling apparel and household items.
It listed assets of about $1 billion and and liabilities of about $1 billion as of Dec. 31.
The company is profitable on an operating basis but has been struggling to meet debt and interest obligations.
Since 1989, it has undergone a $425 million refinancing, the signing of a $325 million working-capital agreement and the acquisition of 33 Gold Circle discount stores in Ohio and New York from Federated Department Stores Inc.