Randa Corp is to buy Humphreys, a small leather goods company, which filed for bankruptcy on Tuesday.

While the bid requires court approval in order for an acquisition to take place, Randa said it expects to complete the purchase within the next 60 days. The potential purchase price was not disclosed, but market sources estimate Humphreys to have an annual volume in excess of $100m.

According to a statement from Humphreys, certain of the company's secured lenders have provided additional funds that will be used to cover operating expenses. Terry Tackett, senior vice president of Humphreys, said the company has suffered at the hands of a "combination of issues in the past few years," but unmet sales goals, a substantial debt load and the recent difficult retail environment have "brought the whole situation to a head," leading to the Chapter 11 filing.

Paul Rosengard, executive vice-president of Randa, commented that the acquisition would mark the company's first venture into the small leather goods market.

Randa currently owns and operates neckwear and hosiery operations in the US, Canada, Italy and the UK. According to Rosengard, all of Humphreys' operations, including merchandising, manufacturing and sales, will remain in Chicago.