John Varvatos Creditor Deal Clears Way for Bankruptcy Sale

Private equity firm Lion Capital LLC, the current owner of John Varvatos Enterprises Inc., has reached a deal to pay Varvatos’ unsecured creditors more of their claims, removing their objections on Lion’s plan to acquire the fashion brand out of bankruptcy.

The agreement, announced by a Lion lawyer Monday during a telephonic hearing at the U.S. Bankruptcy Court for the District of Delaware, calls for unsecured creditors to receive at least $2 million in recoveries, up from $250,000 envisioned earlier.

Lion, through its affiliate Lion Hendrix Cayman Ltd., has proposed to buy the company out of Chapter 11 bankruptcy by ...