Tuesday Morning will pursue a financial and operational reorganization designed to allow the company to reduce its outstanding liabilities and strengthen its overall financial position. To pursue this reorganization, Tuesday Morning filed voluntary petitions for protection under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division.
After a long struggle to improve operations and financial performance, resulting in a Chapter 11 filing, Pier 1 Imports has filed a motion seeking bankruptcy court approval to begin an orderly wind-down of the company’s retail operations after store locations are able to reopen following COVID-19-related closures.
J.C. Penney stated in a bankruptcy court document that it must emerge from Chapter 11 quickly in preparation for the 2020 holiday season, shortly after announcing that it had received approvals from the U.S. Bankruptcy Court for the Southern District of Texas regarding First Day motions related to the company’s voluntary Chapter 11 petitions, including approval for it to access and use its approximately $500 million in cash collateral.
J.C. Penney has filed for Chapter 11 bankruptcy protection and entered into a restructuring support agreement with lenders holding approximately 70% of its first lien debt in an effort to reduce the company’s outstanding debt and strengthen its financial position.
As many anticipate a chapter 11 bankruptcy announcement, J.C. Penney made an approximately $17 million interest payment that was due and payable on May 7 regarding the company’s senior secured term loan credit facility.
Stage Stores has filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. The company will simultaneously solicit bids for a going concern sale of the business or any of its assets and initiate an orderly wind-down of operations. The company will terminate the wind-down of operations at certain locations if it receives a viable going-concern bid.
Neiman Marcus has received interim approval from the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division for all of the first day motions related to its voluntary Chapter 11 proceedings filed on May 7.
Neiman Marcus has filed Chapter 11 and entered into a restructuring support agreement with a significant majority of its creditors to undergo a financial restructuring, substantially reducing its debt load and interest payments and supporting continued operations during the COVID-19 pandemic and beyond.
Sur La Table is reportedly preparing for a potential bankruptcy filing as the coronavirus pandemic forced the retailer to shutter its stores and cancel cooking classes, according to a report via Bloomberg News.
With the coronavirus pandemic shutting down non-essential shopping across the U.S., J.C. Penney is said to be in advanced talks with bank lenders for a bankruptcy loan as large as $1 billion to carry it through a potential chapter 11 process, The Wall Street Journal reported.
With the COVID-19 pandemic and a Chapter 11 bankruptcy filing continuing to pressure the business, Pier 1 Imports is extending employee furloughs and continuing pay reductions even as it has been mailing conditional notices to staffers in its home office, customer relations call center and distribution and fulfillment centers about potential operations closures as it moves to meet requirements of the federal Worker Adjustment and Retraining Notification Act.
According to a recent media report from Bloomberg, Pier 1 Imports is expected to receive a revised purchase offer in bankruptcy that would keep open fewer than 100 of the company’s 900-plus locations.