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The Honolulu Advertiser
Posted on: Monday, June 22, 2009

Aloha wear company bids to bring Hilo Hattie out of bankruptcy

Advertiser Staff

A local aloha wear manufacturer has made an 11th-hour bid to bring Hilo Hattie out of bankruptcy.

Royal Hawaiian Creations is offering to invest $3 million in Hilo Hattie and keep operating the venerable retailer.
A U.S. Bankruptcy Court judge has scheduled a hearing for next Monday to decide how the case should proceed.
Royal Hawaiian Creations floated its proposal today in court after completing a deal on Friday to acquire the stock of Hilo Hattie from the owner that filed for Chapter 11 in October. The seller of the stock, a California partnership, had purchased Hilo Hattie for $1 million last July from founder Jim Romig with the idea to turn around the financially troubled retailer.
A rival $3 million bid by another Hilo Hattie creditor, Maui Divers, was made last month to resolve the bankruptcy and keep Hilo Hattie operating, but an attorney for Maui Divers said the company hasn't decided its next move.