Lifetouch Portrait Studios Inc. recently gained approval for the $3.3 million purchase of the assets of troubled St. Louis portrait studio operator CPI Corp. Several of CPI's landlords, including Brown Ave. Holdings LLC, are still owed rent, but the sale will go forward in spite of their objections.

"The proposed sale only benefits the lenders and the Pre-Petition Agent and unfairly treats Brown Ave. and other similarly situated landlords, who are providing uncompensated use of real property to the Debtors," wrote Tobey M. Daluz, a Wilmington-based partner in Ballard Spahr's Bankruptcy, Reorganization and Capital Recovery Group. Ms. Daluz is representing Brown Ave. in the matter.

CPI Corp. filed for Chapter 7 bankruptcy on May 1. The company laid off 4,300 employees and owed creditors close to $100 million.

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Bankruptcy, Reorganization and Capital Recovery