Article: Judy's chain may end Chapter 11 with new owner; owner of Rampage Clothing would get major stake. (Judy's Inc.'s bankruptcy reorganization; Rampage Clothing Co.'s Larry Hansel)

Troubled retailer Judy's Inc. is expected to emerge from Chapter 11 bankruptcy protection and be bought by a local manufacturer before the end of January.

The fate of the Van Nuys-based company hinges on whether a U.S. Bankruptcy Court judge decides Jan. 25 to confirm the company's reorganization plan and allow Westridge Partners, a shell company formed by the owner of downtown Los Angeles-based Rampage Clothing Co., to buy a majority stake.

The creditors committee for Judy's, which filed for Chapter 11 in February 1992, earlier this month approved the proposed reorganization plan. The plan offers most creditors 20 cents on the dollar.

"If the ...

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