Giftware supplier Enesco filed a $17.5 million bid for bankrupt retailer Things Remembered that would salvage the chain’s direct-sales business, but close most of its 400 stores.

The Ohio-based retailer filed for bankruptcy protection in U.S. District Court, Wilmington, DE, on Wednesday with plans to close most of its stores and sell the remaining assets to Enesco, which entered a stalking horse bid in advance of an auction on March 5. Among the largest unsecured creditors is Li & Fung, which is owed $2.8 million.

Under Enesco’s plan 50 stores would remain with an option to add more locations, according to court documents. Things Remembered started closing stores in January and plans to shut another 228 locations along with 30 kiosks, the company said. Another 128 of Things Remembered’s more profitable outlets will be sold as part of the bankruptcy process, the chain said.

For Enesco, the acquisition would be its first venture into retail. It sold its Gund toy business to Spin Master Corp., but continues with its own and licensed brands, including licenses for Disney- and Harry Potter-related products.

Contacts:

Enesco, Todd Mavis, CEO, 800-436-3726

Things Remembered, Nelson Tejada, Pres.-CEO, 440-473-2000