United Retail, Owner of Avenue In Bankruptcy

United Retail, Owner of Avenue In Bankruptcy

Do you have an Avenue store in your town? There is a chance it may go out of business due to a corporation that owns it. United Retail Group Incorporated is going into bankruptcy and can borrow up to 25 million dollars depending on an agreement with lenders. The group has actually claimed that it needs to borrow a loan of up to 40 million dollars in order to keep operating while trying to save itself from complete destruction during bankruptcy. Many sources have claimed that Avenue has had a difficult time competing against other stores that are more well-known, established, and popular. Additionally, United Retail Group has been dealing with liquidation problems since being purchased in 2007 by Redcats USA.

Redcats USA would now prefer to sell United Retail Group because they feel that Avenue hs not been bring in enough sales or success. By selling United Retail, Redcats would have a better opportunity to focus on working on other businesses and prospective brands. Supposedly, United Retail owes a debt of around 67 million dollars and has been looking for options that will keep it in operation until it finds another corporation to sell itself to for the chance to keep Avenue.

Obviously, for United Retail to have a debt of 67 million dollars, there has been a noteworthy problem with Avenue and other related businesses for some time. The risk of the business should have been apparent within a short amount of time. One can only wonder why United Retail didn't sell Avenue or try a different alternative instead of allowing it to fall into bankruptcy.

Do you think that Avenue will go out of business or will United Retail be able to salvage its name?