United Retail, owner of the Avenue plus-size women's clothing stores, has filed for Chapter 11 protection in a Manhattan court. The company was approved for a $25 million loan that can rise up to $40 million on a final basis to keep its 433 stores operating as it tries to sell itself to the highest bidder.

 

The company has struggled with liquidity issues since it was purchased in 2007 by Redcats USA, who wants to sell the business to focus on its other brands. Avenue has battled with larger national chains with greater resources leading up to the bankruptcy.