Beauty Brands to Liquidate as Reorganization Put Aside

Bankrupt salon and spa superstore Beauty Brands LLC will liquidate its assets in a sale to Absolute Beauty LLC.

Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware approved Beauty Brands’ conversion to a Chapter 7 bankruptcy case Feb. 25.

The U.S. Trustee asked the court to convert the case for cause because Beauty Brands said it expects to become administratively insolvent in March, which means it can’t pay attorneys’ and other professional fees it incurs if it continues trying to reorganize.

The Kansas City, Mo.-based company filed for Chapter 11 protection Jan. 6, and ...