- Enters a Restructuring Support Agreement
- Facilitated Sale of the Assets to Coldwater Creek
- Reorganizes Debt to Support Sale and Continuation
ST. LOUIS, Sept. 11, 2023 /PRNewswire/ — Soft Surroundings (the “Company”) today announced that it has entered into a Restructuring Support Agreement (“RSA”) pursuant to which Coldwater Creek under the ownership of Newtimes Group, will continue ongoing direct-to-consumer and e-commerce operations.
To implement the RSA, the Company has filed voluntary petitions for reorganization under Chapter 11 in the Bankruptcy Court for the Southern District of Texas (Houston Division). Soft Surroundings has secured $18 million in debtor-in-possession (“DIP”) financing from Gordon Brothers, subject to court approval, to enable business continuity. The DIP will enable the Company to continue to operate the business and meet its financial obligations, including the timely payment of employee wages and benefits without interruption, vendor payment for goods and services received on or after the filing date and other commitments during the restructuring.
The Company will also begin taking steps to reorganize around its direct-to-consumer and e-commerce operations.
“Over the past year, we have taken significant steps to fortify our financial standing including rightsizing our business to better match current market conditions. Our commitment to our stakeholders has never wavered as we meticulously evaluated the best path forward and are welcoming this next step to financially secure a bright future for Soft Surroundings. This will allow us to adapt, restructure and emerge more resilient, ensuring the longevity of the beloved Soft Surroundings brand for our customers and partners,” states Bridgit Lombard, Executive Chair.
About Soft Surroundings
Headquartered in St. Louis, Mo., Soft Surroundings is a thoughtfully curated retailer of women’s apparel, home, shoe and accessories merchandise. Releasing its first catalog in 1999, Soft Surroundings has since been dedicated to empowering women to look and feel their best. Soft Surroundings meets the needs of its many devoted customers through its e-commerce channel, SoftSurroundings.com (http://softsurroundings.com/).
About Coldwater Creek
Founded in Sandpoint, Idaho in 1984, Coldwater Creek (www.coldwatercreek.com) is a lifestyle brand and Ecommerce retailer of women’s apparel, shoes and accessories. Inspired by the splendor of the great Northwest, Coldwater Creek’s unique fashion aesthetic embraces the simplicity, artistry and beauty of nature. Headquartered in Fort Lauderdale, FL, Coldwater Creek is committed to creating meaningful customer relationships, a seamless shopping experience and trusted style advice.
About Gordon Brothers
Since 1903, Gordon Brothers (www.gordonbrothers.com) has helped lenders, management teams, advisors and investors move forward through change. The firm brings a powerful combination of expertise and capital to clients, developing customized solutions on an integrated or standalone basis across four services areas: valuations, dispositions, financing and investment. Whether to fuel growth or facilitate strategic consolidation, Gordon Brothers partners with companies in the retail, commercial and industrial sectors to provide maximum liquidity, put assets to their highest and best use and mitigate liabilities. The firm conducts more than $100 billion worth of dispositions and appraisals annually and provides both short- and long-term capital to clients undergoing transformation. Gordon Brothers lends against and invests in brands, real estate, inventory, receivables, machinery, equipment and other assets, both together and individually, to provide clients liquidity solutions beyond its market-leading disposition and appraisal services. The firm is headquartered in Boston, with over 30 offices across five continents.
SOURCE Soft Surroundings
Originally published at https://www.prnewswire.com/news-releases/soft-surroundings-takes-strategic-steps-to-secure-stronger-future-for-the-company-301922950.html
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