The roughly $7 million sale of the Fresh Produce retail chain, which sells vacation-inspired clothing to women, got approval from a bankruptcy judge.
In a court order signed Tuesday, Judge Michael Romero approved the chain’s sale to an investor group that includes Fresh Produce’s existing owners, Thom and Mary Ellen Vernon
The deal is expected to keep more than half of Fresh Produce’s 27 stores open. The retailer targets both tourists and “non-tourist customers for whom a ‘vacation state of mind’ resonates,” Chief Financial Officer Jo Stone said in earlier documents filed in in U.S. Bankruptcy Court in Denver.
The Boulder, Colo., chain filed for chapter 11 protection on April 4
, blaming an “aggressive overexpansion” and high turnover in key positions. As the company began to struggle last year, it closed a store, laid off workers and cut employee pay by 10%.
Fresh Produce employed 270 people at the time of its bankruptcy and made $37.9 million in sales during its most recent fiscal year.