Sierra Leather Design petitions for Chapter 11

October 02, 1992|By Michael Dresser | Michael Dresser,Staff Writer

Sierra Leather Design, once a thriving chain of Baltimore-area stores dealing in fashionable leather apparel, shoes and accessories, is trying to reorganize under Chapter 11 of the federal bankruptcy law.

The Towson-based parent company, Sierra Leather Limited, closed four of its six locations this year and is down to two locations, Towson Town Center and Harborplace.

Howard M. Heneson, the company's attorney, said the two stores will remain open while the company negotiates with its creditors.

Like many small specialty retail chains, the 17-year-old company has been hit severely by the recession. "It sells high-end quality merchandise, and people aren't able to buy it," Mr. Heneson said.

Mr. Heneson said the company, owned by Alan Scherr of Towson, is seeking debtor-in-possession financing and is exploring "every possible avenue" to remain in business.

Sierra Leather's bankruptcy petition, filed Sept. 24, listed assets of $154,000 and liabilities of $198,774.

Before the chain ran into problems, it also had stores at Columbia Mall, Annapolis Mall, White Marsh Mall and Owings Mills Town Center.

A successful Chapter 11 reorganization is difficult for a retailer but not impossible. Eddie Jacobs Ltd., the downtown menswear store, recently emerged from Chapter 11 and reopened in a new location.

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