Leslie Fay Plans To Divide Company

Leslie Fay Cos. Inc., which filed for bankruptcy court protection in 1993 after revealing its books had been doctored, has filed a reorganization plan that would divide the apparel maker into two separate companies.

Under the plan, filed late Tuesday in U.S. Bankruptcy Court in Manhattan, creditors would own a new Leslie Fay that would manufacture the company’s flagship Leslie Fay dresses and sportswear.

Leslie Fay’s Sassco Fashions business, which makes suits, dresses and sportswear under the Kasper for A.S.L. and Albert Nipon labels, will be sold to an investor group.