Samsonite retail group files bankruptcy

MANSFIELD, Mass. – The retail division of Samsonite Corp., which leases 173 store locations in 38 states and employs 650 people, has filed for bankruptcy protection, according to Bloomberg News.
Samsonite Company Stores today listed $233 million in assets and $1.5 billion in debts as of July 31 and cited the decline in demand for travel gear as the reason for the filing.
“The recession has caused a severe decline in consumers purchasing travel-related goods and the company has responded to this critical situation with a substantial restructuring program,” Kyle Gendreau, chief financial officer of Samsonite, said in a statement, according to Bloomberg. A call to the company’s headquarters in Mansfield was not immediately returned.
Samsonite Corp. reported $1.07 billion in revenue for fiscal year 2007, but was acquired for $1.7 billion by London-based CVC Capital Partners Ltd. in October 2007.