Specialty retailer Body Central Corp. (BODY.PK) will close all 265 stores of its and terminate its 2500 employees, according to media reports on Friday. The Jacksonville, Florida-based company's stores will reportedly close Sunday night.
Body Central said Friday that members of its board of directors and stockholders representing in excess of a majority of its outstanding voting stock approved the company's entry into an "assignment for the benefit of creditors" in accordance with the provisions of Chapter 727, Florida Statutes, with Mark Healy of Michael Moecker & Associates, as assignee.
The assignment for the benefit of creditors or ABC is a state process to wind down the business, instead of a typical bankruptcy.
Body Central noted that the assignee will take possession of and protect the company's entire assets. The assignee will administer the estate in accordance with the provisions of Chapter 727, Florida Statutes, and liquidate the assets of the company.
The assignee will then pay and discharge all the debts and liabilities of the company on a pro rata basis, to the extent that funds are available in the estate after payment of administrative expenses, costs and disbursements.
Body Central said that in connection with the assignment, it expects all of its directors and executive officers to resign immediately. The company does not expect its stockholders to have any recovery in the liquidation.
BODY.PK last traded on Monday, December 5, at $0.18, down $0.07 or 29.4 percent on a volume of 79,260 shares.
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