Sur La Table has filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey to consummate a restructuring and going-concern sale of the company, subject to court approval.
With the support of its lenders, Sur La Table has secured the necessary debtor-in-possession financing to complete the court process. The company said it contemplates the sale of Sur La Table retail stores after the rationalization of its national store footprint and closure of certain stores to prosper in the current retail environment and position the company for the future.
The company has entered into a stalking horse asset purchase term sheet with affiliates of Fortress Investment Group. Fortress is working in partnership with STORY3 Capital Partners, who together bring capital and deep consumer expertise which will empower the company to unlock significant growth opportunities. Following the sale, the company will include its successful retail stores, popular in-person and online cooking classes, and its e-commerce business.
Jason Goldberger, CEO of Sur La Table, said, “This sale process will result in a revitalized Sur La Table, positioned to thrive in a post COVID-19 retail environment. Sur La Table will have a balance sheet and retail footprint optimized to position the company for a bright future that continues our nearly 50-year tradition of offering high-quality cooking products and experiences to our customers.”
As of July 4th, 2020, 121 Sur La Table stores across the country have safely reopened, in accordance with CDC, federal, state and local guidelines. The company has filed customary motions with the Bankruptcy Court that will permit, upon court approval, Sur La Table’s ability to maintain operations in the ordinary course.