Swoozie's Files for Chapter 11

Swoozie’s, a national paper retail chain with a store in Wilton, may fold after it filed for Chapter 11 bankruptcy earlier this month.

The Atlanta-based retailer has 43 locations across the country. It now faces complete liquidation. CEO Kelly Plank-Dworkin founded Swoozie’s with her husband David, who died three years ago.

“Having lived here for just about a year, I was thrilled to find a store like Swoozie’s in our town,” Wilton resident Kathleen Mitchell said.  “I have purchased shower gifts, birthday gifts, hostess gifts as well as holiday items at the Wilton store. It's also a great place for stationary and cards.  The staff there is always so helpful. It will be a shame if they close!"

Donna Sanford, manager of Swoozie’s Wilton store wouldn’t comment, referring all inquiries to Swoozie’s public relations manager in Atlanta.

"This action is an unfortunate but necessary and responsible step to preserve value for Swoozie's, Inc.'s secured creditors, vendors, landlords, additional creditors, customers, and employees in light of the ongoing challenging retail environment," said Dworkin, CEO of Swoozie's, Inc. according to a company press release.

It’s not the first time financial trouble has visited the Wilton location. It was formally the Blue Tulip gift shop, which filed for Chapter 11 bankruptcy in 2009. At that time Swoozie’s assumed all 13 Blue Tulip leases. 

In court documents filed on March 23 in U.S. Bankruptcy Court in Georgia, Swoozie’s said its purchase of the Blue Tulip chain contributed to its current financial woes. Swoozie’s had projected $12.8 million in sales from the Blue Tulip stores in 2009. Instead sales were $8.5 million.

In addition, Swoozie’s said consumers slashed spending  in 2009 because of the tanking economy. However, according to the statement, Dworkin said the company’s business model is sustainable and the Chapter 11 process will let it find the “best alternative for all of our stakeholders."