All articles tagged with #chapter 11 bankruptcy
Camp Mystic in Texas filed for Chapter 11 bankruptcy after catastrophic floods killed 28 people at the girls’ camp. Weeks of testimonies and investigations highlighted serious gaps in flood emergency planning and staff training, leading to halted reopening plans and renewed calls for safety improvements from families and lawmakers.
Sleep Number filed for Chapter 11 bankruptcy protection and announced a court-supervised sale process, naming Sleep Country Canada as the stalking-horse bidder in a potential North American bedding merger. The deal remains subject to higher bids, court approval, and customary closing conditions, with Sleep Number continuing normal operations and projecting up to $260 million in debtor-in-possession financing to support the process. The company is also reviewing its retail footprint, including seeking to reject leases for 44 non-operational locations, while indicating potential international expansion if the sale closes. Sleep Country Canada would gain Sleep Number’s smart-bed technology and wellness platform as part of the transaction.
Fabric and crafts retailer Joann has filed for Chapter 11 bankruptcy protection, with plans to emerge as a privately-owned company by the end of next month. The Ohio-based company's more than 800 stores and website will continue to operate normally, and it has secured new financing and expects to reduce its debt by about $505 million. Joann listed over $2.44 billion in total debts and $2.26 billion in total assets in its Chapter 11 petition, filed in Delaware.
Joann Fabrics and Crafts has filed for Chapter 11 bankruptcy, citing more than $1 billion in debt, shrinking revenues, and a widening net loss. The company's stores and website will remain open, and it reassured customers, vendors, and creditors that there will be no disruption in services. The news led to a negative reaction on Wall Street, with shares trading down as much as 20%. Joann went public in 2021 but has faced challenges, including the absence of a full-time CEO since last May.
Thrasio, a major player in e-commerce aggregation, has filed for Chapter 11 bankruptcy protection to address its substantial debt. The company has secured $90 million in emergency financing and plans to erase $495 million of its existing debt. Thrasio's struggles reflect the challenges faced by late-stage tech companies amid a downturn in fundraising. The company's ambitious roll-up play, which aimed to consolidate smaller e-commerce businesses, ultimately faltered, leading to layoffs and a change in leadership. While Thrasio's collapse is significant, other companies in the e-commerce aggregation space have also raised substantial funding, indicating that similar challenges may lie ahead for the industry.
Terraform Labs, the company behind digital assets TerraUSD and Luna, has filed for Chapter 11 bankruptcy in Delaware following the collapse of its cryptocurrencies in 2022. The company plans to continue its operations and support litigation pending in Singapore and the U.S. involving the Securities and Exchange Commission. The bankruptcy filing comes after the SEC postponed the civil trial against Terraform Labs and co-founder Do Kwon over an alleged $40 billion cryptocurrency fraud. Kwon, who owns a 92% stake in the company, is currently in custody in Montenegro and could be extradited to the U.S. or South Korea.
Audacy, owner of WBBM Newsradio and other Chicago radio stations, has filed for Chapter 11 bankruptcy in an effort to reduce its $1.9 billion debt to $350 million. The company attributes its financial struggles to pandemic-induced conditions, such as reduced listenership and ad spending. The bankruptcy filing aims to restructure debt and provide equity to debt-holders in exchange for long-term loans. Despite the filing, Audacy plans to continue its operations and digital transformation without disruptions to employee wages or benefits.
Audacy, the second largest radio chain in the U.S., including major Chicago stations like WBBM-AM 780 and WXRT-FM 93.1, filed for Chapter 11 bankruptcy to reduce nearly $2 billion in debt, largely stemming from its 2017 merger with CBS Radio. The company aims to convert long-term loans to equity stakes, reducing its debt to $350 million pending court approval. Despite revenue declines and pandemic challenges, Audacy reassures employees that it will be "business as usual" for its radio stations during the bankruptcy process, with no disruption to wages and benefits.
Xinyuan Real Estate's subsidiary, Hudson 888 Owner LLC, has filed for Chapter 11 bankruptcy protection in the Southern district of New York court, with estimated liabilities and assets ranging between $100 million to $500 million. This move reflects the challenges faced by the Chinese developer in the US real estate market and signals a significant financial restructuring.
The parent company of Woodland Mall, Pennsylvania Real Estate Investment Trust, has filed for Chapter 11 bankruptcy as part of its plan to reorganize and reduce its debt by $880 million. Woodland Mall itself is not a debtor in the case and will continue to operate normally, with its loan expected to be extended. This is the second time PREIT has filed for Chapter 11 bankruptcy, with the previous filing occurring in November 2020.
Rite Aid has announced the closure of five stores in Northeast Ohio as part of its Chapter 11 bankruptcy filing, bringing the total number of store closures in Ohio to 10. The pharmacy chain cited falling sales and opioid-related lawsuits as reasons for the closures. The affected stores include locations in Fairlawn, Broadview Heights, Willoughby, Canton, and East Liverpool.
The Catholic Archdiocese of Baltimore has filed for Chapter 11 bankruptcy ahead of anticipated lawsuits over child sexual abuse. The filing comes as a new law is set to take effect in Maryland, lifting the statute of limitations to allow new civil lawsuits over older acts of abuse. The Archdiocese faces a significant number of lawsuits due to historic cases of child sexual abuse previously barred by Maryland law. Lawyers representing survivors criticize the bankruptcy filing as an attempt to evade accountability. The financial reorganization is expected to take two to three years, during which victim-survivors can file claims for compensation.
SmileDirectClub, a tooth alignment company, has filed for Chapter 11 bankruptcy protection due to years of losses, weak sales, and nearly $850 million in long-term debt. The company plans to continue normal operations with an investment of at least $20 million from its founders. An additional $60 million in capital is available upon certain conditions. SmileDirectClub aims for a brief restructuring process and is being represented by legal counsel Kirkland & Ellis, financial adviser FTI Consulting, and investment banker Centerview Partners. Since going public in 2019, the company has faced challenges, including safety concerns and supply chain inflation, and has yet to turn a profit.
Rite Aid, one of the largest pharmacy chains in the US, is reportedly preparing to file for Chapter 11 bankruptcy to restructure its $3.3 billion debt and address lawsuits related to the unlawful filling of opioid prescriptions. The filing would pause the claims against the retailer and potentially consolidate them in one place. Rite Aid has been facing financial pressures, reporting a net loss of nearly $307 million in the last quarter. The company's bankruptcy risk potential has been deemed significantly higher than average, and it has made targeted reductions to its expenses in an effort to achieve growth in the coming years.
Pharmaceutical company Mallinckrodt PLC has announced plans to file for Chapter 11 bankruptcy for the second time in less than three years as part of a restructuring agreement with its debtholders. The company aims to reduce its debt by approximately $1.9 billion and will make a final payment of $250 million to the Opioid Master Disbursement Trust II to support efforts related to the opioid crisis. Mallinckrodt expects to complete the prepackaged bankruptcy process by the fourth quarter of 2023, while continuing to provide therapies, pay staff, and vendors.