On the heels of a Chapter 11 bankruptcy filing, Paul Harris officials are sketching out a cost-cutting plan that could mean the closure of the company's two-year-old Indianapolis flagship store.

"All I can say is, we will be staying open through the holiday shopping season," said Richard Hettlinger, chief financial officer and senior vice president.

Hettlinger didn't deny rumors circulating in real estate circles that the chain's 15,000 sq ft store would shut its doors. It's the largest of Paul Harris' 300 stores.

The Indianapolis-based retailer -- which specializes in apparel for women ages 25 to 45 -- filed bankruptcy October 17, reporting $116.4m in assets and $60.2m in debt.

While Paul Harris officials aren't discussing details of their reorganization publicly, they met Monday in an afternoon board meeting to discuss the company's future. They will go before a judge in several months to present the chain's recovery plan.

As of Monday, trading of company shares remained halted, a ruling Nasdaq handed down as soon as the company announced its bankruptcy filing. Shares closed that day at 47 cents.

Since then, Paul Harris has secured a $45m loan from LaSalle Bank, but sales continue to decline. Third-quarter sales, reported earlier this month, decreased nearly seven per cent from $62.2m in 1999 to $57.9m this year.