- Prachi Singh |
Destination Maternity Corporation has filed voluntary petitions to restructure under chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The company said that it filed to facilitate and continue a marketing process begun in early September that has already yielded indications of interest from several credible bidders.
“This decision is a difficult, but necessary one,” said Lisa Gavales, Chair of the Office of the CEO of the company in a statement, adding “In a challenging retail environment, we have had to make some very tough choices, but we are confident that the steps taken today provide an opportunity to continue a marketing process that provides the most efficient means of maximizing value to our stakeholders.”
The company added, to help fund and protect its operations during the chapter 11 process, Destination Maternity obtained consent to use cash collateral from all of its prepetition secured lenders. The Company believes that this access to liquidity will be sufficient to pay suppliers and other business partners and vendors for authorized goods and services provided post-filing and during the chapter 11 process.
The company further said that throughout this process, Destination Maternity, A Pea in the Pod, and Motherhood stores will continue to deliver products and services to which its customers are accustomed to both in stores and on-line. Destination Maternity is also filing customary first day motions that, once approved by the Bankruptcy Court, will allow the company to transition its business into chapter 11.
Picture:Facebook/A Pea in the Pod