Mlive reports, MC Sports' plan to wind down and sell off the merchandise at its 68 stores in seven states won the interim approval of U.S. Bankruptcy Judge John T. Gregg in a hearing on Thursday, Feb. 16."This is a sad day and we are trying to make the best of a bad situation. We just ran out of cash," MC Sports' lawyer, Stephen Grow, told Gregg at the outset of the first hearing since the Grand Rapids-based chain filed for Chapter 11 bankruptcy on Tuesday, Feb. 14.In a 2 1/2-hour hearing attended by lawyers for MC Sports' creditors and landlords, Gregg also gave the company permission to honor $2 million worth of gift certificates and other incentive coupons. He will conduct a final hearing in mid-March.MC Sports still is trying to find a buyer who will take over some or all of the chain's stores in seven states, Grow said. But absent a rescue, the company will sell off all of its existing merchandise by the end of April or early May.The privately held company decided to file Chapter 11 bankruptcy protection after it was unable to secure enough cash to buy its spring inventory