J. Peterman Files For Bankruptcy

One year ago catalog retailer J. Peterman was riding high, with plans to open 70 stores and that ultimate symbol of pop culture cachet: regular mentions on Seinfeld.

Now, Seinfeld is off the air and the company it satirized is in bankruptcy court, where it sought protection from its creditors Monday.

The court was to meet Tuesday to consider motions in the petition made under Chapter 11 of the U.S. Bankruptcy Code, which enables a company to keep operating under a court's supervision while it develops a plan for returning to solvency.

Asked the reason for the filing, company founder John Peterman responded with typical directness: "Sarcastically, lack of money prompted it."

Peterman, in an interview, said the company ended up with excess inventories after a weak 1998 catalog season and delays in opening stores, including locations in Seattle and New York's Grand Central Station.

But Peterman added that he was optimistic about obtaining financing in the future. "I am quite confident that we will pull the fat out of the fire," he said.

Peterman said there are no plans to close any of the company's 13 existing stores, although some employees will be laid off. The catalog business will continue to operate.

Peterman started selling high-priced, retro-style clothing and accessories in 1987 with a catalog that became noted for its quirky copy, which featured extended personal musings about the items for sale. The marketing approach was imitated by other retailers and become the target of satire by Seinfeld, the top-rated television comedy.

During the show's final three seasons, ending last May, the character Elaine worked for J. Peterman, whose headquarters were relocated to New York for the show's purposes. There, she was terrorized by a fictional version of John Peterman (played by character actor John O'Hurley), who delivered spacy monologues about his world travels, ramblings that echoed the catalog's copy.

The real Peterman, a much more straightforward businessman, professed to enjoy the joke and decided early last year to capitalize on the Seinfeld notoriety with a retail expansion that included plans for 50 stores and 20 catalog outlets.

Executives were recruited from J. Crew, Calvin Klein and The Gap, $10 million was raised from private investors and plans were made to target upscale markets.

By last month, though, the company had laid off 20 people at its Lexington headquarters and put a freeze on new store openings through mid-1999. Peterman blamed worldwide financial upheaval and uncertainty surrounding the impeachment of President Clinton for slower-than-expected sales in the catalog business and said the company was experiencing "growing pains."

Written By Tim Whitmire, Associated Press Writer