Bernie’s Plots Comeback, Will Open New Store June 1
Former Bernie’s Audio Video CEO Milton Rosenberg repurchased the bankrupt chain’s brand name for $150,000, apparently setting the stage for a comeback. The chain, which filed for bankruptcy in January and liquidated, will reopen June 1 as Bernie’s Home Services with a single 20,000-square-foot store in Manchester, Conn., and 20 employees, sources familiar with the plans said. Rosenberg, whose father founded the retailer in 1947, wasn’t immediately available for comment. Bernie’s joined the Nationwide buying group and is weighing opening a second store in August (CED March 3 p2).
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Under an agreement approved by U.S. Bankruptcy Judge Albert Dabrowski in Hartford, Conn., Rosenberg will buy the Bernie’s trade name as well as its online domain name, Bernies.com. Rosenberg also agreed for a fee to help Citizens Bank recover the former Bernie’s accounts receivable, according to court records. It’s expected that the receivables Citizens recovers and the sale of the trade name will be less than the $2.1 million balance the bankrupt retailer owed the bank when it liquidated, the documents said. The agreement bars Citizens from selling or transferring the former Bernie’s customer list to “any third party or trustee,” they said. However, Citizens can use the list to help collect the receivables.
Bernie’s, which operated 15 outlets in Connecticut and Massachusetts, returned store leases to landlords March 31, the documents said. The retailer’s Enfield, Conn., headquarters was returned to a landlord April 1. About $1.6 million will still be owed to Citizens after proceeds from inventory sold during liquidation sales this year, they said.