By Chelsea Emery

NEW YORK, Feb 9 (Reuters) - S & K Famous Brands Inc , which operates men's clothing stores, filed for Chapter 11 bankruptcy protection on Monday and said it planned to close weaker stores, according to court documents.
The men's clothing retailer, based in Richmond, Virginia, has about 1,095 full and part-time employees and operates about 136 stores under the name S & K Menswear, mostly in the Carolinas and mid-Atlantic states.
Over the past year, S & K closed 78 stores and cut jobs, but merchandise vendors began demanding cash in advance as the U.S. economy declined, making it difficult for the company to buy as much inventory as it needed. S & K told the court.
"The company found itself, like all other businesses, entrenched in the worst economic crisis since the Great Depression," Richard Hardy, S & K's vice president of finance and information technology, wrote in a statement to the bankruptcy court.
S & K began in 1967 and grew to more than 200 stores.
The company has asked the bankruptcy court to approve $13 million in debtor-in-possession financing to help fund its business while operating under creditor protection. S & K's existing lender, Wells Fargo, will provide the proposed financing.
S & K told the court that DIP financing would give it time to close underperforming stores "while maintaining the value of the company's going forward business."
The company said its total assets were $41.4 million, and total debt was $35.5 million.
A number of apparel retailers have sought bankruptcy protection in the past year, including Steve & Barry's and Goody's LLC.
Many companies plan to emerge from bankruptcy stronger and better organized, but bankruptcy advisors said that is becoming more difficult.
"At this moment, it's very difficult to see a turnaround business plan for most retailer businesses that file for bankruptcy, no matter how well they were run," said Alan Gover, a partner with New York law firm White & Case.
"Consumers believe that things will fall and fall and fall in value, and they'll get better bargains. Even the finest management team will find that an overwhelming challenge."
An attorney for S & K was not available to comment on the company's plans.
The case is In re S & K Famous Brands Inc., U.S. Bankruptcy Court, Eastern District of Virginia, Case No. 09-30805.

(Reporting by Chelsea Emery; Editing by Lisa Von Ahn, Toni Reinhold) Keywords: S&KFAMOUSBRANDS/ (chelsea.emery@thomsonreuters.com; +1 646 223 6115; Reuters Messaging: chelsea.emery.reuters.com@reuters.net)

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.