Bankruptcy Information

US-based GTT Communications, Inc (“GTT”), a global cloud networking provider, has filed Chapter 11 bankruptcy protection in the US Bankruptcy Court, which it expects to reduce its debts by US $2.8 billion. GTT’s foreign businesses outside of the US are not included in the filing. According to court papers, GTT blamed its financial trouble on issues surrounding its acquisitions of companies where it took on significant debt to finance one of those transactions.

Sequential Brands Group, Inc. (NASDAQ: SQGB) a US-based fashion brand holding company, has filed for Chapter 11 bankruptcy protection for a possible sale of all or most of its assets under a court-supervised process. The company, which owns the Jessica Simpson, Joe’s Jeans, And1, Avia and more brands, said in a press release that, as a result of the significant debt on its corporate balance sheet, it was no longer able to operate its portfolio of brands. In connection with the in-court process, Sequential will be obtaining US$150 million in debtor-in-possession (“DIP”) financing from its existing lenders. Sequential expects the new financing, together with cash generated from ongoing operations, to provide ample liquidity to support its operations during the sale process.

Fresh Acquisitions LLC and several of its affiliates, which operates a chain of buffet-style restaurants under the names Furr’s Fresh Buffet, Ryan’s, Old Country Buffet, Tahoe Joes Famous Steakhouse, and Hometown Buffet, has filed for Chapter 11 bankruptcy protection to strengthen their operations and recapitalize their businesses. The companies expect to continue operating in the normal course during the bankruptcy process.

US-based gym chain Bodytek Fitness Inc. has filed for Chapter 11 bankruptcy protection for debt reorganization amid the COVID-19 pandemic. General Manager Rusty John Carbaugh blamed the filing on the COVID-19 social distancing restrictions and extra expenses related to sanitization, which have limited revenue for the company. The company plans to keep all its five locations open after the bankruptcy declaration.

US-based fashion company The Collected Group, LLC has filed for Chapter 11 bankruptcy protection amid the COVID-19 pandemic with a plan to reduce its debt. Chief Restructuring Officer Evan Hengel said the company's operations were upended by the pandemic, with retail revenue falling by 85% and wholesale revenue falling by 70% in 2020. The struggling company is now looking to fully wind down its physical locations and to focus on e-commerce and wholesale channels.

US bottle recycling company CarbonLite Holdings LLC announced it has filed for Chapter 11 bankruptcy. CarbonLite cited pressures directly related to the COVID-19 pandemic for its financial issues, pointing to slowdowns in production because of employee illness and the depressed price of new plastic. CarbonLITE supplies the largest beverage makers in the world including Coca-Cola Co., Nestle Waters North America Inc. and PepsiCo.

US-based card and gift retailer Paper Source Inc. has filed for Chapter 11 bankruptcy protection for potential sale of the business. Chief Financial Officer Ronald Kruczynski said in a court filing that the company has sustained deep damage to their finances and operations as a result of the ongoing COVID-19 pandemic. The struggling retailer, employing about 1,700 people in the country, plans to close at least 11 stores of its 158 stores during the process.

US Department store chain Belk has filed for Chapter 11 bankruptcy protection for debt restructuring. Chief Financial Officer William Langley attributed the filing to the COVID-19 pandemic, which directly resulted in drastic declines in sales, revenue and liquidity. After the filing, Belk won court approval for the restructuring plan which allows to trim its debt by US$450 million and provide US$225 million in new financing from its private-equity owner Sycamore Partners.

US sunglasses retailer Solstice Marketing Concepts LLC has filed for Chapter 11 bankruptcy protection for possible debt restructuring. The sunglasses chain said that its retail store business has been significantly impacted by COVID-19, with retail sales during the pandemic having been more than 50% lower than 2019. Solstice added that it will seek financing upon the court’s approval to keep funding its ongoing operations.

Knotel Inc, a flexible office space provider focusing on enterprise customers, has filed for Chapter 11 bankruptcy protection for a possible sale of the business to real-estate services firm Newmark Group Inc. Knotel’s co-founder Amol Sarvasaid attributed the filing to the pandemic, which created a uniquely challenging operating environment, with significant impacts on leasing velocity and the rate of renewals in key markets, particularly New York and San Francisco.

The U.S. arm of French beauty and well-being house L'Occitane Inc., has filed for Chapter 11 bankruptcy protection with plans to close 23 of its 166 stores in the US. The US firm said in a press release that its business continues to be impacted by disproportionately high store rent obligations that are no longer tenable, adding that it has taken action to further accelerate a transformation already well underway to best position its business for the future. The filing does not include the L'Occitane en Provence brand or any operations outside the US.

Specialty women’s apparel retailer Christopher & Banks Corporation (OTC: CBKC) has filed for Chapter 11 bankruptcy protection for a potential sale of the business. President and CEO Keri Jones attributed the decision to the impact of the COVID-19 pandemic which has caused significant financial distress on the business. The company said it will continue to operate its business in the ordinary course in the near term.

US-based farm, home and outdoor retailer Tea Olive I, LLC, which does business as Stock+Field, has filed for Chapter 11 bankruptcy protection for debt restructuring. Chairman and CEO Matthew Whebbe said in an announcement that there have been many challenges in 2020, and the retailer chain was not immune to them. Stock+Field has commenced a closing sale process and plans to close all of its 25 stores by March.