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CALIFORNIA | BRIEFLY: RETAILING

Garden Botanika Seeks Bankruptcy Protection

April 21, 1999| Reuters

Cosmetics and personal-care product retailer Garden Botanika Inc. said it filed a petition in Bankruptcy Court in Seattle under Chapter 11 of the U.S. Bankruptcy Code. As a result, Garden Botanika said it will close a third of its 245 stores in 34 states and lay off 200 full-time employees and 1,000 part-time workers. Redmond, Wash.-based Garden Botanika said it filed its petition to address obligations associated with its recent financial difficulties and related reorganization. Garden Botanika said it has negotiated $7 million in debtor-in-possession financing from BankBoston Retail Finance Inc. to fund its operations during the voluntary reorganization period. The company said it will seek authority to close 95 of its 245 retail stores nationwide and liquidate the related inventory by May 31. Most of the closures will occur in the Midwest and Southeast. Its stock last traded around 20 cents.

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