Avenue Stores’ Bankruptcy Conversion to Chapter 7 Approved (1)

Avenue Stores LLC, a bankrupt retailer of plus-sized women’s clothing, will convert its case to Chapter 7 after creditors and the Justice Department pushed the company to liquidate.

The company must turn over its property and records to a Chapter 7 trustee within a week, said Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court for the District of Delaware, who approved the conversion at a hearing Nov. 22.

The U.S. Trustee, the DOJ’s bankruptcy watchdog, notified the court that it had appointed David W. Carickhoff as interim trustee in the case.

Silverstein’s ruling follows a request earlier this month ...