Pacific Northwest Asiana Airlines, South Korea's second-biggest carrier, said it plans to spend $438 million to buy two Boeing 777-200ER...
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Cargo-unit sale wins court’s OK
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Aloha Airlines, the bankrupt Hawaiian carrier that ceased passenger flights, won court approval to sell its profitable cargo unit to Seattle-based shipper Saltchuk Resources.
U.S. Bankruptcy Judge Lloyd King in Honolulu approved the sale Thursday, less than a week after Aloha grounded cargo flights due to a lack of bidders. Hawaii Sen. Daniel Inouye personally urged Saltchuk to reverse its earlier decision to drop an offer in an effort to save 300 jobs, the company said.
Saltchuk retracted its $13 million bid last month after Aloha’s main lender, GMAC, set a minimum price of $20 million. Saltchuck, owner of interisland cargo shipper Young Brothers, didn’t specify how much it will pay for the Aloha unit. The price was cut to $10.5 million, The Honolulu Advertiser said Friday, citing unidentified GMAC lawyers at a bankruptcy hearing.
Aloha stopped passenger flights March 30.
Nation / World
Linens ‘n Things
Retailer files for bankruptcy
A Chapter 11 bankruptcy filing by Linens ‘n Things is the latest sign that the retail sector is becoming leaner and meaner amid a difficult consumer environment.
On Friday, the bedding and home-furnishing retailer filed a petition in bankruptcy court in Delaware and said it would close 120 underperforming stores, almost a quarter of them in California.
The Clifton, N.J.-based company said economic factors such as the decline in the housing market, tightening credit markets and a downturn in consumer discretionary spending, particularly in the housewares and home-furnishings sector, led to a “precipitous decline” in profitability and liquidity.
Consumers are likely to lose out as well. Brian Riley, senior analyst at research firm The TowerGroup, estimates the filing will freeze about $42 million in consumer gift cards, affecting about 400,000 customers.
Linens ‘n Things, which operates about 589 retail stores in 47 states, joins specialty retailers Sharper Image and Lillian Vernon in seeking bankruptcy protection.
Compiled from Bloomberg News and The Associated Press