[Just filed. Developing story.] January 29, 2023 – Privately held Nova Wildcat Shur-Line Holdings, Inc. and five affiliate debtors (dbe H2 Brands Group Home & Hardware; “H2 Brands Group*" or the “Debtors”) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 23-10114 (Judge TBA). The Cranbury, NJ based Debtors, wholesalers and on-line retailers of home improvement product brands including Shur-Line, Bulldog and World and Main, are represented by Jason D. Angelo of Reed Smith LLP. Further board-authorized engagements include: (i) Carl Marks Advisory Group, LLC as financial advisors (and providing Howard P. Meitiner as CRO), (ii) SSG Advisors, LLC as investment bankers and (iii) Epiq Bankruptcy Solutions, LLC as claims agent.
* In October 2018, Nova Capital Management (offices in Chicago and London, portfolio list here) announced that it had merged its consumer brands, Shur-Line™ and Bulldog Hardware™, with World and Main, LLC's retail brands, formerly owned by Littlejohn & Co.
The Debtors’ lead petition notes between 1 and 50 creditors; estimated assets between $10.0mn and $50.0mn; and estimated liabilities between $50.0mn and $100.0mn. Documents filed with the Court list the Debtors’ three largest unsecured creditors as (i) Jiangsu Shihua ($5.8mn trade debt claim), (ii) Wuxi Bote Electrical Appliances Apparatus Co. ($4.2mn trade debt claim) and (iii) Cixi Xinxiuli Electrical Appliance Co ($3.1mn trade debt claim). All 30 of the Debtors' top 30 unsecured creditors have trade-related claims with over 20 of those claimants listing Chinese addresses.
Following a default under their 2018 senior credit agreement, the Debtors were notified by administrative agent PNC Bank, National Association ("PNC Bank") of its intention "to sell its collateral under the Credit Agreement, in whole or in parts, by private sale or sales." Having pushed the Debtors into Chapter 11, PNC Bank has now agreed to provide $3.7mn of debtor-in-posssession ("DIP") financing to see the Debtors through an in-court sale process.
About the Debtors
According to the Debtors: “ H2 Brands Group is a leading consumer products company with a growing portfolio of nationally recognized brands, now all under one roof.
Today, we are comprised of 22 brands with over 10,500 products representing 30+ categories – from fans to faucets to flashlights and so much more. We have distribution footprint of over 790,000 square feet across North America and 16 countries in our global sourcing network, enabling us to provide our customers with innovative home and hardware products as well as top-notch customer service.
We have the expertise and assortment to customize the best programs for any retailer, whether it’s big box, mass chain store, wholesaler, eRetailer or local independent hardware store.
Core categories include consumer electronics, paint sundries, hardware, home environment and plumbing products. Owned brands include: Comfort Zone® (home environment); Shur-Line® (paint sundries); Craig (consumer electronics); Bulldog®, Guard® Security, Ultra Hardware™ (hardware, locksets & security); WordLock® (padlocks); Bright-Way® (electrical supplies); Helping Hand (housewares); AquaPlumb® (plumbing) and Road & Home™.
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The post Nova Wildcat Shur-Line Holdings, Inc. – NJ-Based Wholesaler of Home Improvement Brands Files for Chapter 11 with over $50mn of Liabilities after Senior Lenders Threaten Sale of Collateral; Will Pursue Going Concern Sale appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.