West Hempstead-based retailer National Wholesale Liquidators Inc., which recently disclosed plans to lay off 392 workers in New York State, has filed for Chapter 11 bankruptcy and "is winding down its operations."
The Wednesday night bankruptcy filing by NSC Wholesale Holdings LLC estimates it has assets of $10 million to $50 million and liabilities in the same range.
A news release Wednesday said the company has engaged two companies to help it sell the inventory and fixtures at its stores.
"NWL remains hopeful of attracting a purchaser to continue all or a portion of its business as a going concern," the statement said.
The filing in U.S. Bankruptcy Court in Wilmington, Delaware, put the number of creditors at 200 to 999. The largest listed creditor, Arett Sales Corp. of Pennsauken, New Jersey, had an unsecured claim of $3.4 million, according to the filing.
"Undertaking a court approved process is in the best interest of the company and its stakeholders," Scott Rosen, chief executive of National Wholesale Liquidators and beneficiary of a 33.3 percent share of equity in NSC, said in the news release.
National Wholesale Liquidators sells a wide array of discount merchandise. An online circular for the company included sofas, mini blinds, eggs, vacuum cleaners, clothing and watches.
The company plans to lay off 140 workers at 111 Hempstead Turnpike, West Hempstead, its only Long Island location, and 252 more at stores upstate and in New York City, according to a Worker Adjustment and Retraining Notification required under New York State law.
In the filing, the company said it would lay off the workers 30 to 60 days "after liquidation."
In its press release, NWL said it has made court motions to continue paying employee wages and providing health benefits.
In Chapter 11 bankruptcy, companies seek protection from creditors while they restructure their debt. If the reorganizations fail, companies may file for Chapter 7 bankruptcy under which they liquidate assets to pay creditors.
NSC Wholesale Holdings acquired some of the assets of a previous owner of the National Wholesale Liquidators chain after the retailer filed for Chapter 11 bankruptcy in 2008, which converted to a Chapter 7 case the following year.