With 40 stores in the region, including 2 in Rhode Island, the women's fashion retailer filed for bankruptcy protection last month.

01:00 AM EST on Wednesday, March 23, 2005

BY PAUL GRIMALDI
Journal Staff Writer

Connecticut retailer J. Silver Clothing Inc., which has shops in Cranston and Pawtucket, is set to be sold in a bankruptcy court auction later this month, according to recently filed court documents.

The women's fashion store, based in South Norwalk, Conn., last month filed for Chapter 11 protection in U.S. District Court in Wilmington, Del. The company operates 40 stores in Southeastern New England, New York and Illinois, as well as the two Rhode Island locations. A Providence outlet closed earlier this year.

In court papers, the company said it has received a bid of $540,000 from Rainbow Northeast Leasing Inc. for its assets, excluding leases on eight locations -- among them the one on Oaklawn Avenue in Cranston.

J. Silver reported estimated assets and liabilities each of $1 million to $10 million, according to its bankruptcy filing Feb. 25.

The company listed CIT Group Inc.'s CIT Commercial Services as its largest unsecured creditor, with a trade debt of about $243,000.

J. Silver's board of directors informed the court that the company terminated the contracts of chief executive officer Robert S. Bland and chief financial officer Joseph Bastone.

Bids for J. Silver's assets must be received by the creditors' committee by March 25, with the auction set for March 28.