New Delaware Chapter 11 Filings – Vestis Retail Group, LLC et al.
Vestis Retail Group, LLC and eight affiliates, which own the Bob’s Stores, Sports Chalet and Eastern Mountain Sports retail chains, have filed chapter 11 petitions before the United States Bankruptcy Court for the District of Delaware (Lead Case No. 16-10971). The Honorable Christopher S. Sontchi will administer the cases. Sports Chalet has started the process of closing all of its stores and some of the Bob’s Stores and Eastern Mount Sports stores will also be closed. The debtors have entered into an asset purchase agreement with a stalking horse bidder and filed a motion seeking authority to sell all of their assets and are seeking the approval of $125 million in debtor-in-possession financing. The petitions (including the consolidated list of top 40 creditors), the first day declaration and the docket are available through Kurtzman Carson Consultants. Vestis Retail Group, LLC has issued a press release regarding these reorganization proceedings.
Contact Norman L. Pernick, Nicholas J. Brannick, or David W. Giattino for more information.
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.