PE Firm To Be Lead Bidder In United Retail's Ch. 11

Law360, New York (February 1, 2012, 1:23 PM EST) -- United Retail Group Inc., which makes plus-sized clothes for women under the Avenue brand, filed for bankruptcy on Wednesday, citing too-expensive rent at retail locations and saying private equity firm Versa Capital Management LLC will serve as lead bidder for its assets.

United Retail Group has entered into an asset purchase agreement in which Philadelphia-based Versa Capital will serve as the "stalking horse" bidder for a court-supervised asset sale, the debtor said.

In 2011, the Avenue brand suffered a $28 million operating loss on more than...
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