Mandee owner blames Sandy for bankruptcy

Big M, which operates the Mandee and Annie Sez clothing stores, says insurance companies aren't paying up for storm-related damages.

By Aimee Picchi Jan 8, 2013 2:31PM

Image: Insurance - NULL/CorbisSuperstorm Sandy was bad enough, forcing Big M to close many of its Mandee and Annie Sez stores for a week. But the aftermath -- with Big M alleging its insurers dragged their feet on paying claims -- has added to the company's woes.


Alan Mandelbaum, the chief executive of Big M, tells the New York Post that the company, which declared Chapter 11 bankruptcy on Monday, "wouldn't be in this position" if its carriers, which weren't named, had paid claims on a timely basis. 


The company will keep its 129 stores open while it reorganizes -- and continues to seek claims for storm-related damages of more than $6 million, the Post notes. Big M doesn't have immediate plans to eliminate jobs. 


The Oct. 29 storm came at a sensitive time for Big M, with the company at the tail end of a 2011 restructuring, according to Bloomberg. 


"We're very disappointed. We were making significant progress," Mandelbaum told the Post. The company was on track to make a $1.9 million profit in 2012, compared with an $8 million loss in 2011, before the hurricane hit the New York region. 


Big M isn't the only retailer to feel the effects of Superstorm Sandy. Many stores reported a drop in sales because of closings, slower business because of damage and lack of employees, according to the Census Bureau


The company, which was founded by Leon, Max and Bernard Mandelbaum after they returned from World War II, remains a family business, notes Reuters.


More on Money Now

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

Trending NOW

What’s this?

MARKET UPDATE

[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.

The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More

MSN MONEY'S