Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Retailing

Coldwater Creek Chapter 11 Petition, Plan Filed

Coldwater Creek and seven affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 14-10867. The Company, which is a multi-channel specialty retailer of women’s apparel, jewelry and accessories, is represented by Pauline K. Morgan of Young Conaway Stargatt & Taylor. The Company announced that it initiated this bankruptcy proceeding “in order to facilitate an orderly wind-down of its operations.” The Company expects to commence sales to liquidate its inventory in early May 2014. Jill Dean, president and chief executive officer of Coldwater Creek, comments, “This difficult decision follows a comprehensive strategic and financial review of the business. The Board of Directors has determined that the actions we are taking represent the best path forward for Coldwater Creek and its stakeholders. While we are extremely disappointed with this outcome, the Company’s declining liquidity position and the challenging retail environment, together with the fact that we have exhausted all other possibilities, requires that we take this action.” Coldwater Creek has received a commitment for $75 million in debtor-in-possession financing from its existing lender, Wells Fargo. Subject to Court approval, this financing will be available to support the Company’s operations during the wind-down process. The Company also states that it has reached an agreement with its lenders on a Prepackaged Chapter 11 Plan of Liquidation, which does not contemplate any recovery for holders of the Company’s common stock. The Plan and related Disclosure Statement were filed concurrently with the petition. Coldwater Creek has also reached as an agreement with inventory liquidators, Gordon Brothers Retail Partners and Hilco Merchant Resources to manage all inventory clearance sales.

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