The bankruptcy train keeps on rolling through the CE industry. As was hinted at in the beginning of May, retailer Tweeter has sought Chapter 11 protection.
TWICE: Tweeter Files For Chapter 11 Protection
Canton, Mass. — Tweeter Home Entertainment Group announced it is filing for Chapter 11 protection of the U.S. Bankruptcy Code.
In a statement, the chain said the decision was made “to address its financial challenges and support its ongoing efforts to evolve its home installation and services business model.”
Tweeter also said it has received a $60 million secured debtor-in-possession credit facility provided by General Electric Capital Corp.. Tweeter, through a first-day motion, will seek immediate authority to access that post-petition credit facility. Tweeter intends to use the post-petition liquidity to purchase merchandise, pay employee salaries and benefits and for other general corporate purposes.
As I mentioned in the post last week about Sirius' new line of credit, "general corporate purposes" = "pay the bills, and keep the lights on." It's signifcant, and a little unusual for a company that is seeking creditor protection to also need an emergency cash injection on the first day. Things must really have gone badly if there's nothing at all in Tweeter's piggy bank.
TWICE: Tweeter Files For Chapter 11 Protection
Canton, Mass. — Tweeter Home Entertainment Group announced it is filing for Chapter 11 protection of the U.S. Bankruptcy Code.
In a statement, the chain said the decision was made “to address its financial challenges and support its ongoing efforts to evolve its home installation and services business model.”
Tweeter also said it has received a $60 million secured debtor-in-possession credit facility provided by General Electric Capital Corp.. Tweeter, through a first-day motion, will seek immediate authority to access that post-petition credit facility. Tweeter intends to use the post-petition liquidity to purchase merchandise, pay employee salaries and benefits and for other general corporate purposes.
As I mentioned in the post last week about Sirius' new line of credit, "general corporate purposes" = "pay the bills, and keep the lights on." It's signifcant, and a little unusual for a company that is seeking creditor protection to also need an emergency cash injection on the first day. Things must really have gone badly if there's nothing at all in Tweeter's piggy bank.
I wish Tweeter the best of luck in getting their act back together, but on the other hand, they're going to have plenty of company in the Chapter 11 lounge before the year is out.
Sphere: Related Content
No comments:
Post a Comment