Herb Philipson’s Army & Navy Store locations are soon to close.
According to paperwork filed with U.S. Bankruptcy Court Northern District of New York in Utica, owner Guy Viti filed a “Store Closing Motion” Thursday, and a hearing on the motion is scheduled for 1 p.m. Thursday, Aug. 29.
Until recent months, the sporting goods retail company remained in bankruptcy following no bidders in the retailer’s auction last month.
Herb Philipson’s filed for a Chapter 11 bankruptcy reorganization 10 months ago and has continued in business although it has closed some of its store locations.
After receiving no bids at an auction for Herb Philipson’s, the store located on Route 57 in Clay closed just a few weeks ago, with a sign on the door indicating permanent closure of the Glen Crossing Plaza location.
CEO Viti has not returned calls for comment or to confirm the closure.
The motion that the company had filed for the auction in July cited “the debtor’s (Herb Philipson’s) dwindling cash reserves and dire financial situation,” and said it proposed to sell assets to a successful bidder “to maximize value for its creditor constituencies.”
It also said that “absent an expeditious sale, the debtor’s cash reserves will continue to dwindle, which will likely render the debtor administratively insolvent in the coming weeks. This continued erosion of the debtor’s cash position will leave the debtor with no real alternative but to cease operations and liquidate its assets on a piecemeal basis.”
Viti said on July 10 that if the company did not sell at auction, he would continue with restructuring.
A longtime Herb Philipson’s employee, Viti had purchased the company from the Philipson family in March 2018, filing for Chapter 11 bankruptcy reorganization seven months later.
Herb Philipson’s remaining stores are in Rome on Black River Boulevard, plus New Hartford and Herkimer. The company started in downtown Rome in 1951.
Officials at the New Hartford Shopping Center location in New Hartford confirmed that the store would be closing “90 days from August,” but could not give an exact closing date.
New Hartford Shopping Center Manager Bill Morris also did not return a call for comment Friday.
Personnel at the Rome and Herkimer stores referred calls to the corporate office in Rome, however calls were not returned.