New Delaware Chapter 11 Filing – NSC Wholesale Holdings, LLC

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NSC Wholesale Holdings, LLC, along with six affiliates and subsidiaries, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-12394).  The Debtors operate a chain of general merchandise closeout stores in the northeastern United States under the name “National Wholesale Liquidators.”  According to the First Day Declaration, the Debtors have filed for chapter 11 relief as a result of several unexpected financial and operational setbacks, as well as the industry-wide headwinds facing brick and mortar retailers.  The Debtors have filed a motion for continued use of their pre-petition cash collateral, a $20 million revolving loan from Capital One, NA.  The Debtors are also seeking to assume a consulting agreement with a joint venture between Hilco Merchant Resources and Gordon Brothers, and to proceed with store closings and inventory salesOmni Management Group is the proposed claims agent.  The cases have been assigned to the Honorable Kevin J. Carey.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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