Phase Suppliers Inc filed for Chapter eleven individual bankruptcy late on Sunday, the newest casualty of the coronavirus pandemic following the collapse of luxury retail outlet chain Neiman Marcus and clothing retailer J. Crew Team Inc.
The lower price office retail outlet operator will find bids for the business or any of its property, whilst it also begins to wind down its functions, Phase Suppliers reported in a assertion.
The corporation listed the two property and liabilities concerning $500 million and $one billion, according to a submitting with the U.S. Individual bankruptcy Court for the Southern District of Texas.
“The increasingly hard current market setting was exacerbated by the COVID-19 pandemic, which required us to temporarily shut all of our retailers and furlough the huge vast majority of our associates,” Chief Executive Officer Michael Glazer reported in a assertion.
“Specified the disorders, we have been not able to acquire important financing and have no selection but to get these steps.”
Houston, Texas-based Phase Suppliers was trying to find to avoid individual bankruptcy by asking vendors for much more time to shell out charges and other concessions, Reuters claimed final thirty day period.
The corporation shut all its 738 retailers and three distribution facilities in March, alongside with other “non-crucial” suppliers, as part of initiatives to suppress the spread of the novel coronavirus during the United States.
Phase Suppliers reported it now expects to reopen about 557 retailers on May 15, about sixty seven retailers in the next phase by May 28 and the relaxation by next thirty day period.
The corporation also reported Chief Economical Officer Jason Curtis is leaving the corporation, effective May 22, to go after a career with another retailer and that CEO Glazer would oversee the finance operate.
Kirkland & Ellis LLP acted as lawful adviser to Phase Suppliers and PJ Solomon was its expense banker. Berkeley Exploration Team LLC served as restructuring adviser.