Swoozie's to auction its assets

By Péralte C. Paul

The Atlanta Journal-Constitution

Swoozie's Inc., the Atlanta-based gift and paper retailer that sought bankruptcy protection nearly two weeks ago, will auction its assets.

The company, which employs 350 in 43 stores across 14 states, received approval to hold the auction -- set for 10 a.m. March 25 -- from U.S. Bankruptcy Judge C. Ray Mullins.

The auction is to be held at Alston & Bird, the law firm representing Swoozie's in the bankruptcy.

All qualified bidders will have to submit their proposals by noon March 23 to participate in the auction.

Mullins will review all the bids at a hearing March 29.

Swoozie's, founded in 2001, already has one bid from Hudson Capital Partners, a Newton, Mass.-based company that specializes in investing in distressed retail assets.

Hudson Capital's bid for all Swoozie's assets was about $5.34 million.

Swoozie's blamed the bankruptcy on the current economic downturn as well as 13 poorly performing stores it acquired in the Northeast.

In its initial filing, in the U.S. Bankruptcy Court's Northern District of Georgia in Atlanta, Swoozie's said it had less than $10 million in assets and between $10 million and $50 million in debt.