Privately-held Charming Charlie and seven affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 17-12909.
The Company, which operates fashion accessory stores, is represented by Domenic E. Pacitti of Klehr Harrison Harvey Branzburg. The Company also announced its entry into a restructuring support agreement (RSA) with a majority of its term loan lenders and equity sponsors. The RSA provides for a comprehensive financial and operational restructuring. Subject to Court approval, the Company also intends to proceed with its plans to close underperforming locations and simplify business operations.
Lana Krauter, interim C.E.O, comments, “The actions we are announcing today are intended to help ensure that the Company has adequate sources of financing and the right capital structure to support the business on an ongoing basis as we continue to implement our Back-to-Basics Strategy. We are confident that by reducing the size and scale of our business, we can focus on the core strengths that make the Company successful.” The Company has secured commitments for $20 million in new-money debtor-in-possession financing from a majority of its existing term loan lenders. The Company has also entered into a $35 million D.I.P. asset backed loan with its current lenders.
Charming Charlie’s Chapter 11 petition indicates assets greater than $100 million.
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