hhgregg files for bankrupcty under Chapter 11

(BUSINESS WIRE)--hhgregg, Inc. today announced that it has taken action to restructure its balance sheet and better position itself for future success by filing voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. This follows the Company's delisting by the New York Stock Exchange earlier this month and the  Company’s announcement on March 3, 2017 that it is closing 88 stores in 15 states and 3 distribution centers. The stores being closed include 5 in Illinois:  Schaumburg, Bloomingdale, Arlington Heights, Niles, Springfield and Champaign.

“We’ve given it a valiant effort over the past 12 months,” said Robert J. Riesbeck, hhgregg's President and CEO. “We have conducted an extensive review of alternatives and believe pursuing a restructuring through Chapter 11 is the best path forward to ensure hhgregg’s long-term success. We are thankful for the continued support of our dedicated employees, valued customers, vendors and business partners as we navigate this process, and look forward to becoming a stronger company in the coming months.”

The Company has signed a term sheet with an anonymous party to purchase the assets of the Company, which is intended to allow the Company to exit Chapter 11 debt free with significant improvement in liquidity for the future stability of the business. The Company expects a quick and smooth process through Chapter 11 with emergence in approximately 60 days.

“We have streamlined our store footprint and remain fully committed to the 132 remaining stores, and the associates supporting those locations. We have solidified our senior management team and everyone is dedicated to restructuring our business model for future profitability and growth,” continued Riesbeck. “Through these strategic steps, we plan to come out of this debt free and more agile as we serve our valued customers and vendor partners, and continue to be a dominant force in appliances, electronics and home furnishings.”

hhgregg's 132 store locations will operate in the ordinary course of business throughout the restructuring process. The 88 stores affected by the Company’s announcement on March 3, 2017 will continue to operate as previously disclosed in the coming weeks.

As it navigates the Chapter 11 process, hhgregg intends to continue:

• Providing superior delivery, installation and customer service;
• Providing wages, healthcare and other benefits to its associates without interruption; and
• Paying suppliers and vendors for the goods and services it receives in the ordinary course of business throughout the restructuring process.
• The Company has obtained a committed $80 million debtor-in-possession (“DIP”) financing facility underwritten by Wells Fargo Bank, National Association and GACP Finance Co., LLC.

Subject to Court approval, this DIP financing, combined with the acquiring party’s investment and the Company’s cash from operations, is expected to provide sufficient liquidity during the Chapter 11 case to support its continuing normal business operations and minimize disruption.

Morgan, Lewis and Bockius LLP and Ice Miller are serving as hhgregg’s legal advisors in the restructuring and Stifel, Nicolaus & Company, Incorporated, Miller Buckfire & Co., and Berkeley Research Group, LLC are serving as financial and restructuring advisors.

Chicago Retailer Mark Shale Files For Chapter 11 Bankruptcy

CHICAGO, Aug. 21, 2012 /PRNewswire/ -- Mark Shale, the Chicago-area high-end fashion retailer, announced today that it has filed a voluntary petition for Chapter 11 business reorganization in the U.S. Bankruptcy Court of the Northern District of Illinois.

Mark Shale's President Rich Myers said: "We have tried since Mark Shale was acquired to ensure the lasting success of this 83-year-old Chicago icon. The company has always sought to bring quality and outstanding service to high-end fashion. We are proud to have some of the most experienced and loyal employees in the business, from sales associates, to tailors, to warehouse staff, to buyers and managers.

"Unfortunately, in the current economic environment and despite our significant efforts over the past few years, we have concluded that a Chapter 11 filing was the Company's best alternative. We continue to seek a strategic partner to fortify the business. In the meantime, all three of our stores – at 900 N. Michigan Avenue, Oakbrook Center and Northbrook Court – will, as always, provide the highest level of service to our customers."

Founded in 1929, Mark Shale has been one of Chicago's premier providers of men's and women's clothing. Known for its extraordinary customer service and timeless clothing collections, Mark Shale has consistently been named one of the best stores in the United States by Esquire Magazine.

Giordano's Pizza Sold at Bankruptcy Auction

According to the Chicago Tribune, the Giordano's pizza chain was sold today (November 16) at auction for $61.6 million to an investor group led by Chicago-based private equity firm Victory Park Capital.

Giordano's and its related entities filed for Chapter 11 bankruptcy protection last February. The company owed nearly $50 million to its principal lender, Fifth Third Bank and about $2 million to two other banks.

The price bid at the auction was reportedly high enough that the company's unsecured creditors may receive some payments on their claims.

Read the full article.

Filenes Basement and Syms to Liquidate

Discount clothing retailer Syms Corp., known for its slogan "An Educated Consumer is our Best Customer," and its Filene's Basement chain, famous for its "Running of the Brides" events, filed for bankruptcy Wednesday in Delaware. Both chains plan to go out of business. In the Chicago area, Syms has one store, in Addison, and Filene's Basement has 2 stores in Chicago, at One North State Street and at 830 N. Michigan Avenue on Chicago's Magnificent Mile.

Syms and Filene's Basement will be jointly administered during the bankruptcy. The liquidation of stores is expected to run through approximately January 2012. The schedule for store closings is to be determined as the liquidation of merchandise is completed.

Chief Executive Marcy Syms said, in a prepared statement, "This has been a challenging time for Syms and Filene's Basement. We have been faced with increased competition from large department stores that now offer the same brands as our stores at similar discounts."

Syms Corp was founded by Sy Syms in 1959. Filene's Basement traces its roots back to 1909 and founder William Filene. Syms acquired assets of Filene’s Basement, Inc., which had filed for bankruptcy, in a bankruptcy auction in 2009. Syms Corp and Filene's Basement, LLC collectively own and operate 46 "off-price" apparel stores located predominantly on the east coast of the United States under the "Syms" name (which, together with co-branded Syms/Filene's Basement stores, are owned and operated by Syms Corp) and the "Filene's Basement" name (which are owned and operated by Filene’s Basement, LLC).

With the end of Filene's Basement goes its "Running of the Brides" events (pictured above). Brides-to-be from acrosss the Midwest traveled to Chicago to find bargain wedding gowns. The dresses, often discontinued lines from major wedding gown manufacturers, appealed to both bargain hunters and simply adventurous brides and their friends and family, who often came as a team. While there are plenty of bridal boutiques in Chicago, there was only one Filene's Basement. Photo credit: Dimonika Studio/Flickr