07:06 AM CDT on Wednesday, May 7, 2008

Bloomberg News

Bag'n Baggage Ltd., a Dallas-based luggage retailer with more than 30 stores in 10 states, has filed for bankruptcy protection from creditors, including Bank of America Corp.


The company listed debt and assets of $10 million to $50 million each in Chapter 11 documents filed Tuesday in U.S. Bankruptcy Court in Dallas.
Bag’n Baggage, which didn’t provide a reason for the filing, said it will submit an affidavit explaining events leading up to bankruptcy.


Bag’n Baggage has been selling travel and business gear for more than 35 years, according to the company’s Web site. An affiliate, 900 Corp., also sought bankruptcy protection.


The 20 largest creditors without collateral backing their claims are owed a total of $2.8 million, according to court filings. RIMOWA/HP Marketing Corp., owed $423,835, is listed as the largest unsecured creditor. The largest secured claimholder, owed $7.6 million, is Bank of America, the second largest U.S. Bank.


The luggage retailer has asked the court for permission to use its accounts receivable, on an interim basis, to continue operations. It also seeks permission to continue customer programs and pay employees. A court hearing has been scheduled for tomorrow.


Without the interim relief “lenders, landlords, vendors, employees and customers will suffer irreparable harm,” the company said in court documents.