There were no bids at an auction for Herb Philipson’s Army and Navy Stores Inc., in a proceeding Wednesday in U.S. Bankruptcy Court in Utica.
The sporting goods retail company remains in bankruptcy following no bidders in the auction, according to online reports including the American Bankruptcy Institute. Herb Philipson’s filed for a Chapter 11 bankruptcy reorganization nine months ago and has continued in business although it has closed some of its store locations.
The company earlier this month had filed a motion in court seeking a sale and auction regarding substantially all of its assets.
No further court dates have been scheduled yet in the case.
Herb Philipson’s company CEO Guy Viti and attorney Michael Hamersky, representing the company, could not be reached for comment Friday nor could attorney Erin Champion of the U.S. Trustee’s office.
The motion that the company had filed for the auction 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 Chapter 11 restructuring.
A longtime Herb Philipson’s employee, Viti had purchased the company from the Philipson family in March 2018. In October he filed for Chapter 11 bankruptcy reorganization.
Among the Herb Philipson’s stores that remain open are in Rome on Black River Boulevard, plus New Hartford, Herkimer and Liverpool. The company started in downtown Rome in 1951.