Swoozie's, Inc. Announces Chapter 11 Filing

ATLANTA, March 2 /PRNewswire/ -- Swoozie's, Inc., today filed for voluntary Chapter 11 Bankruptcy protection in the United States Bankruptcy Court for the Northern District of Georgia. The Company expects immediate authorization of its bankruptcy petition.

Swoozie's, Inc.'s decision to file for Chapter 11 protection was driven mainly by the underperformance of its recently acquired 13 northeastern locations and by the impact of the current economic downturn on the Company's operating performance.

Swoozie's core business has remained sound even through the recent turbulent economy, and the customer base is at its strongest point to date. This foundation is one of the key motivators behind The Company's determination to pursue the opportunity to emerge from the bankruptcy.

"This action is an unfortunate but necessary and responsible step to preserve value for Swoozie's, Inc.'s secured creditors, vendors, landlords, additional creditors, customers, and employees in light of the ongoing challenging retail environment." said Kelly Plank Dworkin, CEO of Swoozie's, Inc. Ms. Dworkin stated further, "We believe our business model is sustainable in today's world, and the Chapter 11 process will allow us to find the best alternative for all of our stakeholders."

The company's legal counsel is Dennis Connolly and Wendy Reingold Reiss of Alston & Bird, LLP and the company's financial advisor is Lee Diercks of Clear Thinking Group LLC.

For bankruptcy specifics, visit http://dm.epiq11.com/swoozies.

About Swoozie's, Inc.

Swoozie's, a luxury gift and paper retail chain, operating in 15 states with 43 locations was founded in 2001 in Atlanta, Georgia by Kelly Plank Dworkin and the late David Dworkin. Swoozie's was built on a commitment to and a focus on the important events, celebrations and social occasions in life including weddings, baby showers, birthdays, anniversaries, holidays or simply family dinners.

Swoozie's specialty products include gifts, platters, wine glasses, 'entertaining ware', and invitation and paper assortment. The personalization options at Swoozie's define one of the Company's strongest competitive advantages in the current marketplace. Swoozie's offers and has nationwide partnerships with leading designers in wedding invitations and social stationery. Other personalized options include stickers, jewelry, totes, bibs, towels, candles, aprons, blankets and more.

Swoozie's has 350 employees and is run by Chief Executive Officer and founder Kelly Plank Dworkin. The company web site is www.swoozies.com.

SOURCE Clear Thinking Group LLC

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