Bankrupt Strouds Selling Off Leases

By KATE BERRY
Staff Reporter

Strouds Acquisition Corp., the bankrupt linen retailer that is in the process of liquidating, has sold 16 of its 46 store leases in an auction, with 10 going to Anna's Linens of Costa Mesa.

Anna's Linens was the leading overall bidder, paying $510,000 for the leases and $81,000 to purchase Strouds' web site, as well as furniture, fixtures and equipment from 22 stores, according to a sales report filed with the U.S. Bankruptcy Court for the Central District of California, Los Angeles division.

Anna's, a bed and bath retailer targeting ethnic shoppers in urban areas, plans to open some 40 stores this year.

Strouds' remaining 30 leases will be terminated, said Charles Liu, a lawyer for Strouds. Landlords with damage claims against the retailer will have will have to file an unsecured claim in bankruptcy court, he said.

In all, Strouds raised more than $900,000 from the sale of its leases, which did not include its distribution center in the City of Industry.

The other lease locations that were sold include: Lake Arrowhead, to the original landlord; Thousand Oaks, to Pier 1 Imports; Woodland Hills, under negotiation with Ethan Allen Inc.; Monterey, to Del Monte Regional Mall; and Tustin, to Pacific Coast Home Furnishings. One lease sale, to furniture retailer Ann Charlie Inc. on Strouds' Sunnyvale store, is in question. The buyer is trying to withdraw its $50,000 offer, Liu said.

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