Luskin's files Chapter 11 plan, expects to run 6 or 7 stores Creditors to receive 3on the dollar

Appliances

February 14, 1997|By Liz Bowie | Liz Bowie,SUN STAFF

Luskin's Inc., the longtime Baltimore appliance store that advertised its going-out-of-business sale for the past several months, filed for protection under Chapter 11 of the bankruptcy code yesterday and said the company will re-emerge to operate six or seven Big Screen Stores.

Luskin's, which is owned by Ashby Enterprises Inc., owed creditors between $10 million and $15 million, which it will pay out over three years, according to Deborah Devan, a company spokeswoman. The creditors, including Zenith and General Electric, will receive 35 cents on the dollar, she said.

"I don't think they plan to trade as Luskin's anymore," Devon said. "The filing was a result of the successful negotiations with the company's creditors."

Creditors have already signed off on a reorganization plan that was filed yesterday.

About three properties outside of Maryland will be sold to finance some of payments to creditors, she said, but most of the stores are being leased.

In the past year, three Big Screen Stores have opened in the Baltimore area -- in Towson, Bel Air and Glen Burnie. Three more have opened recently in the Washington suburbs.

Sound and Sight Inc., a subsidiary of Luskin's Inc., owns Big Screen Stores. Luskin's, which became a regional chain in the 1980s, suffered recently from stiff competition from large appliance and electronics discounters.

Luskin's announced in September that it had decided to give up after 48 years and close its 12 remaining regional stores.

Pub Date: 2/14/97

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