CEO Sharon Price John says Build-A-Bear’s old e-commerce system is a big reason for disappointing online sales in December.
The reorganized company has restructured about $500 million in debt.
Nearly seven months after filing for Chapter 11 status, Oriental Trading Co. has emerged from bankruptcy.
In December a U.S. bankruptcy court judge in Delaware gave approval to a reorganization plan that would restructure about $500 million in debt and give most of the equity in a reorganized company to secured lenders. Upon emerging from bankruptcy, which Oriental Trading announced this morning, the company also would have $50 million in exit financing.
Other specifics of the reorganization plan give secondary lien holders warrants to purchase about 5% of Oriental Trading’s new common stock. General unsecured creditors will receive a cash disbursement in an amount equal to their prorated shared of $1.1 million, according to Oriental Trading’s bankruptcy paperwork.
Oriental Trading emerged from Chapter 11 with a significantly improved capital structure and strong liquidity, having reduced its debt by nearly 70%, says CEO Sam Taylor. “Our new capital structure provides us with a sustainable, long-term financial foundation from which we will drive the future growth of the business,” says Taylor. “Performance has stabilized over the last 12 months with revenue growing, continued double-digit operating margins, and record-high customer satisfaction.”
While Oriental Trading has finished its reorganization process, other big e-commerce and catalog companies remain bankrupt, including Blockbuster Inc., (No. 34) which filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York in September. Appleseed’s Intermediate Holdings LLC, more commonly known as Orchard Brands Corp., filed for bankruptcy last month and sought to reorganize and eliminate nearly $420 million in debt.