Latest news with #Chapter15
Miami Herald
3 days ago
- Business
- Miami Herald
Popular lifestyle retail chain files for Chapter 11 bankruptcy
The high-end fashion retail sector has faced economic challenges since the Covid-19 pandemic temporarily shut down the industry in 2020, and it hasn't fully recovered from the retail downturn. Financial distress forced luxury department stores, high-end fashion retailers, luxury brands, and retail chains to file for bankruptcy. Don't miss the move: Subscribe to TheStreet's free daily newsletter Luxury department store Lord & Taylor, high-end retailer Neiman Marcus, luxury apparel chain Brooks Brothers, and designer brand manufacturer Centric Brands all filed for Chapter 11 protection in 2020. Related: Popular restaurant chain franchisee files Chapter 11 bankruptcy When the pandemic subsided, rising labor and product costs driven by inflation, higher interest rates on debt, and consumers' changing attitudes toward spending based on financial uncertainties put new pressure on revenue Luxury retailers continued filing for bankruptcy, as last year, Anne Fontaine USA, the U.S. affiliate of the Paris-based boutique chain, in January 2024 filed for Chapter 11 Subchapter V bankruptcy protection to reorganize in the U.S. Bankruptcy Court for the Southern District of New York, asserting that the company has not been able to recover from financial distress caused by the Covid-19 pandemic. Luxury apparel chain Ted Baker Canada, which operated 31 Ted Baker stores in the U.S., nine in Canada, eight Brooks Brothers Canada shops, and seven Lucky Brand Canada stores, filed for restructuring under Canada's Companies' Creditors Arrangement Act and for Chapter 15 bankruptcy in the U.S. on April 24, 2024, to liquidate and close all 56 of the North American stores. The retailer's owner Authentic Brands Group in August 2024 reached an agreement with United Legwear & Apparel Co. to relaunch e-commerce retail operations for Ted Baker in the U.S., Canada, the U.K., and Europe. Fashion retail brand Sash Group Inc., which markets and sells The Sash Bag crossbody handbags and accessories, on March 25, 2025, filed for Chapter 11 protection to reorganize its business, facing significant tax obligations and unsecured creditor debt. Finally, the parent company of high-end specialty retail chain Karma and Luck filed for Chapter 11 bankruptcy to restructure its debt. Related: Major nationwide trucking company files for Chapter 11 bankruptcy The Las Vegas-based company Zama & Zama Inc., whose retail chain sells spiritual and good fortune-themed merchandise for men and women, filed its petition in the U.S. Bankruptcy Court for the District of Nevada, listing $1 million to $10 million in assets and liabilities. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy Its largest creditors include $2.56 million owed to Settle Inc., $498,000 owed to American Express, over $231,000 owed to landlord IMI Miracle Mile, over $83,000 owed to landlord New WTC Retail Owner and other mall operators. The debtor, founded in 2015 by Vladi Bergman, operates 12 brick-and-mortar high-end retail locations in Las Vegas, Los Angeles, Houston, Florida, and New York. The retailer operates in several high-profile buildings, including at the World Trade Center and Grand Central Terminal in New York, Houston Galleria, Fashion Show Mall in Las Vegas, and the Mall at Miami International. Karma and Luck's merchandise includes women's bracelets, necklaces, rings, earrings, charms, anklets, lifestyle items like pillow and blanket sets; men's bracelets, necklaces, and charms; and home decor. The company's merchandise is also available through major department store retailers, such as Macy's and Nordstrom, and it offers e-commerce transactions on its website. Related: Popular smoothie chain franchisee files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Bloomberg
5 days ago
- Business
- Bloomberg
Altice France Files for Chapter 15 Bankruptcy in New York
Altice France filed for Chapter 15 bankruptcy protection in the Southern District of New York a few weeks after the company entered accelerated safeguard proceedings in France to help it address its debt burden. The business, owned by Patrick Drahi, filed the application on June 17 to seek recognition of the restructuring procedure supervised by a French court and to stop debtholders unhappy with that process undermining the restructuring using US law.
Miami Herald
28-05-2025
- Business
- Miami Herald
Popular internet provider files for Chapter 11 bankruptcy
The technology sector has not been immune to bankruptcy, as several companies have either filed for Chapter 11 protection or are considering filing a petition. Struggling semiconductor supplier Wolfspeed is the latest major technology company to consider filing for bankruptcy, sources familiar with the matter told the Wall Street Journal on May 20. Don't miss the move: Subscribe to TheStreet's free daily newsletter The Durham, N.C., tech company is reportedly pursuing a prepackaged Chapter 11 plan in the coming weeks after out-of-court debt restructuring attempts failed. Related: Huge trucking company files for Chapter 11 bankruptcy In April, banking-as-a-service start-up, Solid, which at one time called itself the Amazon Web Services of fintech, filed for Chapter 11 protection in Delaware after failing to secure an additional round of funding. And now, struggling business internet provider Everstream Solutions LLC has filed for Chapter 11 bankruptcy protection, seeking a sale of its assets, facing a potential default on over $1 billion in prepetition credit agreements. The Cleveland-based provider of connectivity services, communications solutions, and network security for businesses in 13 states in the Midwest and Northeast and Washington, D.C., listed $500 million to $1 billion in assets and $1 billion to $10 billion in liabilities, including $1.06 billion in funded secured debt, in its petition filed on May 28. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy Its largest unsecured creditors include Crown Castle, owed over $1.45 million in trade debt; Illuminating Co., owed over $1 million in trade debt; and Northern Lights Locating & Inspection Inc., owed over $881,000. The debtor blamed significant capital expenditures to expand its fiber network, unanticipated operational losses, industry headwinds, and unsustainable debt obligations for causing its financial distress that required a Chapter 11 filing. Related: Troubled radio station company files for Chapter 15 bankruptcy Everstream, which is 99% owned by non-debtor Midwest Fiber Intermediate US LP, hired restructuring advisers in April 2023, facing limited liquidity and a risk of default, according to a declaration by Chief Restructuring Officer Justin Schmaltz. The debtor launched recapitalization transactions to amend its credit agreements in October 2023, secured equity contributions, and sought a sales process for assets in Illinois, Missouri, and Pennsylvania. The sale process had not closed in April 2024 when it began a review of strategic alternatives, as its 2023 recapitalization cash had diminished, and it faced another risk of default, according to the declaration. The company began seeking a sale of all of its assets in September 2024, while a sale of its Illinois and Missouri assets closed in May 2025. A subsidiary of Bluebird Network LLC submitted a stalking-horse bid for debtor Midwest Fiber Holdings LP, which is listed as Everstream's ultimate owner, for $285 million on May 22. The debtor closed and will wind down its Pennsylvania operations. The debtor is also seeking approval of up to $186 million in debtor-in-possession financing, which includes $55 million in new money to fund its bankruptcy case. The bankruptcy case timeline calls for an auction for the debtor's assets to be held on July 17, a sale hearing set for Aug. 1, a confirmation hearing for the case on Oct. 30 if the stalking-horse bid is successful, or on Nov. 14 if not, and an effective date for the confirmation of the bankruptcy plan by March 26, 2026. Everstream was founded in 2014 and expanded through company growth and acquisitions from 2016-2022. The company generated over $135 million in revenue in 2022, over $148 million in 2023, and $156 million in 2024. The debtor operates in Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, Virginia, West Virginia, Wisconsin, and the District of Columbia. Related: Key healthcare company files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
22-05-2025
- Business
- Miami Herald
Bankrupt retail chain closing 100s of store locations
The drugstore retail sector has faced hundreds of store closings over the last four years, as retailers close underperforming stores and sometimes dump locations in bankruptcy filings. Huge drugstore chain CVS (CVS) in 2021 revealed it would close 900 of its nearly 9,900 stores to reduce costs and cut losses, closing 300 locations each year in 2022, 2023, and 2024. Don't miss the move: Subscribe to TheStreet's free daily newsletter The company said it would consider several factors before closing a store, such as maintaining access to pharmacy services, local market dynamics, population shifts, a community's store density, and ensuring there are other geographic access points to meet the needs of the community. Related: Troubled radio station company files for Chapter 15 bankruptcy Drugstore chain Walgreens, which operates about 8,600 stores, in 2024 said it would close 1,200 underperforming stores over a three-year period, with 500 closings planned in fiscal year 2025, as part of its out-of-court restructuring plan. The retailer, which in March agreed to be sold to private equity firm Sycamore Partners, said it would close locations with negative cash flows, underperforming stores where it owns locations, and ones with lease expirations coming due in the next few years to reduce the impact of dark rent. A more recent report said that the drugstore chain might close even more stores, possibly one-quarter of its locations. Last year, several small drugstore chains filed for bankruptcy, including Eastern Kentucky-based Rx Discount Pharmacy, which operated about seven pharmacy and healthcare businesses. The pharmacy chain on May 1, 2024, filed for Chapter 11 bankruptcy, but did not specify a reason for filing bankruptcy in its petition. Also, CL Cressler Inc., the owner of seven Medicine Shoppe Pharmacy stores located in Pennsylvania and New York, on Aug. 29, 2024, filed for Chapter 11 bankruptcy to reorganize its debts. And now a huge drugstore chain that has filed for bankruptcy twice in the last two years is closing more drugstore chain Rite Aid, which filed for Chapter 11 protection a second time on May 5 as New Rite Aid LLC, has filed notices of additional store closing locations with the U.S. Bankruptcy Court for the District of New Jersey, seeking approval to close 210 stores and liquidate their assets. Related: Another popular pizza dining chain files Chapter 11 bankruptcy Rite Aid filed its first notice with the court on May 9 to close 47 locations in nine states, including California (19), Pennsylvania (8), New York (5), Oregon (4), Connecticut (3), New Hampshire (3), New Jersey (2), Washington (2), and Massachusetts (1). More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The drugstore chain filed a second notice on May 9 to close 68 additional locations in seven states, including Pennsylvania (44), Oregon (8), Washington (6), Virginia (4), California (2), New Hampshire (2), and New York (2). Rite Aid on May 16 filed a third notice to close 95 additional stores in six states, including Pennsylvania (81), California (4), Oregon (4), Maryland (3), Delaware (1) and Virginia (1). The retailer will likely file several more additional store closing notices before its bankruptcy case closes, as it is expected to close all of its stores, estimated at about 1,240. Judge Michael B. Kaplan signed an interim order on May 9 approving initial and additional location closings. Objections to any closings must be received by the court by May 30, with a final hearing to approve all closings on June 6. Rite Aid also won approval on May 21 to sell prescription files from 625 of its stores in 15 states to CVS. The company also sold 64 Rite Aid stores in Idaho, Oregon and Washington to CVS. The drugstore chain, which operated about 1,240 stores, also won approval to sell prescriptions at other locations to Walgreens, Albertsons, Kroger, Giant Eagle and others. Related: Popular gun ammunition dealer files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
22-05-2025
- Business
- Miami Herald
Historic college suffers financial collapse after bankruptcy
For those of us who attended college, there's often a feeling of pride and nostalgia around our alma mater, as it served as the bridge between our youth and our adult lives. While it's not for everyone, many people deeply enjoy going to college reunions and seeing old friends and teachers, catching up, and looking back on fond memories. It can also be deeply rewarding to learn how our old contacts have changed over time. Don't be surprised if you feel a glow of pride when you learn that the girl who sat behind you in algebra now has her Ph.D., or that guy on your soccer team has since joined Manchester United. Don't miss the move: Subscribe to TheStreet's free daily newsletter Many people often feel that the college they attended is a key part of who they are, helping to shape their lives in a significant way. It's part of the reason going back after 20 years away can be meaningful for so many. Related: Troubled radio station company files for Chapter 15 bankruptcy However, not all colleges remain the same after we leave. A sad story has emerged about a historic private school that served an important sector of the population in Oklahoma, and both staff and students are mourning the loss. Image source: Bacone College Facebook Bacone College, originally chartered by the Muskogee (Creek) Nation in 1881, will be forced to follow an order on May 22 to "turn over all keys and control" of the school by 11 a.m. This news comes almost a year after Bacone originally tried to declare Chapter 11 bankruptcy in June 2024. However, U.S. trustee Ilene Lashinsky, who was assigned to the bankruptcy case, argued that untoward financial activity had taken place at the historic institution and made a motion that the bankruptcy be shifted to Chapter 7. Lashinsky's filing called the college's actions "gross mismanagement of the estate." Related: Key healthcare company files for Chapter 11 bankruptcy In the filing, Lashinsky explains that a payment of $16,500 was made by the college to the Small Business Administration to pay a loan owed by Leslie Hannah. Hannah became president of Bacone in April 2024, indicating that Hannah used the college's funds to pay his SBA debt. According to Hannah, he got an SBA loan in the amount of $15,000 before the college filed for bankruptcy to pay the college's payroll. But Hannah and the SBA were not listed among his creditors when the college filed for bankruptcy. In 2023, an auction was planned to help pay off some of the school's debt from a lawsuit, but the auction was then canceled. In its 144-year history, Bacone served a large number of American Indian students with a focus on what it calls a "quality, holistic, liberal art, educational experience." Bacone also frequently provided financial aid for its students via grants, such as the $95,000 contributed from the National Society Daughters of the American Revolution in 2020. Amanda Swope, the Director of Tribal Policy & Partnerships with the City of Tulsa, told KTUL in an interview that she's sad to hear the news about this historic school. "It's certainly unfortunate. You know, not only it takes away an option from students and people in the rural part of Oklahoma that are seeking higher education, but, you know, Bacone was really such a mecca and a well-known university in Indian Country, and for Native students in particular," said Swope. Related: Struggling airline restructures debt, plans to exit bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
