Clothing store Joyce Leslie is headed into bankruptcy, and the chain is preparing to sell assets as part of the agreement, using the capital that is generated to pay down a portion of the debt.

The store, which focuses on women’s fashion and is based out of Moonachie, put in the bankruptcy filing in New York. At the beginning of January, it asked for Chapter 11 bankruptcy, and then asked to set up an auction. Most of the assets that it controls are expected to be sold.

Despite this move, the chief restructuring officer did seem optimistic about the future of the brand, calling it iconic and noting that it generates around $60 million each year. The officer also noted that the brand has loyal customers, so he thinks that it can be successful if someone buys the chain and makes a few alterations.

The most recent proposal that was filed would give buyers some options, as Joyce Leslie can field offers from those who want to buy the entire company and those who just want to buy a piece of it. Officials did note that things will need to move quickly, though, so that the restocking work can be done before the spring and summer, which are big selling seasons.

As such, the auction is projected to happen early on in February of this year. However, no date has yet been set in stone.

This story demonstrates how a company can use bankruptcy to eliminate debt and even sell assets without completely closing its doors, so it’s important for business owners to know exactly how bankruptcy works and what options they have.

Source: NJ.com, “Joyce Leslie files to sell off assets in bankruptcy,” Myles Ma, NJ Advance Media, Jan. 19, 2016