NEW YORK (AP) — Categorical Inc. has filed for Chapter 11 chapter safety as the style retailer appears to be like to promote most of its shops.
Columbus, Ohio-based Categorical, which can also be dad or mum of the Bonbons and Upwest manufacturers, is closing a few of its operations within the course of. In an announcement about its chapter submitting on Monday, the corporate mentioned it deliberate to shut 95 of its Categorical retail shops and all UpWest shops.
Closing gross sales at these areas, which weren’t instantly specified, will start Tuesday. Past these closures, Categorical mentioned it “appears to be like ahead to doing enterprise as standard.”
Additionally on Monday, Categorical introduced that it obtained a non-binding letter of intent from a gaggle led by WHP International to doubtlessly buy nearly all of its shops and operations. Categorical mentioned it had filed for Chapter 11 safety “to facilitate the sale course of.”
The consortium exploring the deal additionally consists of procuring middle operators Simon Property Group and Brookfield Properties, Categorical mentioned. The Related Press contacted WHP, Simon Property and Brookfield on Monday for remark.
In a ready assertion, Categorical CEO Stewart Glendinning mentioned WHP “has been a robust companion” of the corporate since 2023, including that the proposed transaction would give Categorical extra monetary assets and “higher place the enterprise for worthwhile development” whereas maximizing worth for stakeholders.
Based on Categorical's web site, the corporate at present operates roughly 530 Categorical and Categorical Manufacturing unit Outlet retail shops in the US and Puerto Rico, along with roughly 60 Bonobos Guideshop areas, 12 UpWest shops, and on-line operations for these manufacturers.
Categorical reported practically $1.2 billion in complete money owed and $1.three billion in complete belongings in its Chapter 11 petition, which was filed within the U.S. Chapter Court docket for the District of Delaware.
The corporate mentioned Monday that it had obtained a dedication of $35 million in new financing, which is topic to courtroom approval, from some present lenders. That might add to the $49 million in money Categorical obtained earlier this month from the Inside Income Service associated to the pandemic-era CARES Act.
Categorical additionally introduced a management replace on Monday. Mark Nonetheless will grow to be chief monetary officer, efficient instantly, after serving as interim chief monetary officer since November 2023, the corporate mentioned.