Rubie’s Costume Co. to Wind Down With Bankruptcy Plan Approval

Halloween and party costume giant Rubie’s Costume Co. won approval of its Chapter 11 liquidation plan that pays creditors with the proceeds of a $140 million sale.

The plan approved Wednesday pays secured creditors in full and provides recoveries of between 34% and 61% to unsecured creditors, which have claims between $7 million and $11 million, according to the company’s disclosures.

Current shareholders’ equity interests are extinguished. But the Beige family, which founded Rubie’s and operated the company for 70 years, has a 30% stake in Rubies II LLC, the company that bought the business.

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